>>> IT'S THE STORY YOU COULD NOT
AVOID THIS WEEK.
IT PAY BE THE ONE YOU COULDN'T
UNDERSTAND EITHER.
YOU ARE NOT ALONE.
GAMESTOP, A STRUGGLING VIDEO
GAME RETAILER SUDDENLY GAME THE
MOST TALKED ABOUT STOCK ON WALL
STREET.
AMATEUR ONLINE TRADERS WHO
ORGANIZED ON THE PLATFORM REDDIT
BOUGHT UP SHARES AND SENT THE
PRICE THROUGH THE ROOF.
HOW EXACTLY DID IT HAPPEN?
WHY DID IT HAPPEN?
WHAT DOES IT TELL US ABOUT THE
ECONOMY?
JO LING KENT HAS THE SUNDAY
FOCUS.
>> Reporter: GAME STOP HAS CLOSD
1,000 STOPS TO THE CENTER OF A
WALL STREET REVOLUTION.
>> GAMESTOP SHARES RIGHT NOW --
I CAN'T -- I DON'T KNOW WHAT TO
SAY.
IT'S UP 131%.
>> Reporter: IT BEGAN LAST YEAR,
WHEN INDIVIDUAL INVESTORS
STARTED NOTICING HEDGE FUNDS
WERE SHORTING GAMESTOP STOCK,
MEANING THEY WERE BETTING ON THE
SHARES LOSING VALUE.
>> THEY MADE A BET.
WE CALLED THE BLUFF.
>> Reporter: THIS MAN IS ONE OF
SCORES OF INVESTORS WHO WENT THE
OTHER WAY, PURCHASING 62 SHARES,
USING THE TRADING APP ROBINHOOD.
>> THE REDDIT THREAD.
I HAD MONEY SITTING IN MY
ACCOUNT.
I SAW MY FRIENDS ONE TIME.
>> Reporter: THAT BUYING FRENZY
CAUSED WHAT'S CALLED A SHORT
SQUEEZE, FORCING THOSE WALL
STREET GIANTS TO LOSE BILLIONS.
HE PROFITED $10,000.
OTHERS CLAIM TO HAVE MADE
MILLIONS.
>> THE FACT THAT I KNOW THERE'S
SOMEBODY ON THE OTHER SIDE THAT
HAS TO BUY, THAT'S THE REASON I
GOT IN.
IT HAD NOTHING TO DO WITH THE
COMPANY ITSELF.
>> Reporter: THE STOCK WENT
VIRAL, ROBINHOOD AND OTHERS HE
RESTRICTED INDIVIDUAL INVESTORS
FROM TRADING GAMESTOP AND OTHER
HOT STOCKS, LIKE AMC AND
EXPRESS.
THE BIG INSTITUTIONS COULD STAY
IN THE GAME.
THIS TRIGGERING OUTRAGE FROM
LAWMAKERS ON BOTH SIDES OF THE
AISLE, FORCING ROBINHOOD'S CEO
TO GO ON DEFENSE.
>> THIS WAS A RISK MANAGEMENT
DECISION THAT THE PROGRAM MADE
SO WE COULD PROTECT THE FIRM AND
PROTECT OUR CUSTOMERS.
>> Reporter: REDDIT USERS LIKE
DANIELLE, WHO MADE $1,000,
DISAGREES.
>> THERE'S A TWO TIER SYSTEM.
THE RICH GET RICHER AND THE POOR
JUST GET BY.
I FEEL THAT'S JUST A
CONDEMNATION OF THE OVERALL
SYSTEM.
>> Reporter: WAS THIS A
DECLARATION OF WAR IN A SENSE BY
INDIVIDUAL INVESTORS ON THE
FINANCIAL SYSTEM IN A WAY?
>> THAT WAS CERTAINLY THE
FEELING AND THE SENTIMENT THAT
MANY WHO PARTICIPATED IN THIS.
IT'S ONE THAT REGULATORS AND
POLICYMAKERS NEED TO TAKE
SERIOUSLY.
>> Reporter: A NEW REFERENDUM ON
WHO CONTROLS THE MARKET.
>> THE CONCERN IS THAT WE ARE
SEEING REPEAT OF 2008.
WE ARE SEEING A REPEAT OF WALL
STREET LOOKING OUT FOR ITSELF.
IT'S DOING SO BY APPLYING
DIFFERENT RULES TO RETAIL
INTRE
RERETAIL
>> THANK YOU FOR WALKING US
THROUGH THAT.
THE MARKET DISRUPTION GOT THE
ATTENTION OF WASHINGTON.
YOU HAVE CONGRESS VOWING TO HOLD
HEARINGS.
THE SEC WILL LOOK INTO THIS.
WILL GAMESTOP LEAD TO CHANGES ON
WALL STREET?
>> GOOD MORNING.
CERTAINLY AT LOT OF DISCUSSION
ABOUT THAT.
THEY ARE MONITORING THE
SITUATION.
THEY WANT TO PROTECT RETAIL
INVESTORS.
THEY DIDN'T WANT TO STOP PEOPLE
FROM BUYING GAMESTOP.
THEY HAVE BEEN EMPHASIZING THE
RESTRICTIONS WERE PUT INTO PLACE
TO ALLOW THEM TO MEET FINANCIAL
REQUIREMENTS FOR THAT FRENZY OF
TRADING THAT WE SEE.
THAT HASN'T STOPPED SOME MARKET
WATCHERS FROM CALLING THIS A
SEQUEL TO THE OCCUPY WALL STREET
PROTEST THAT SPRANG FROM THE
2008 FINANCIAL CRISIS.
IT'S A RARE MOMENT OF AGREEMENT
WITH BOTH REPUBLICANS AND
DEMOCRATS CONCERNED ABOUT MARKET
MANIPULATION AS A WHOLE AND
WHERE THE REGULATORS DECIDE TO
GO FROM HERE.
ONE BIG WORD ON THE STREET, MORE
TRANSPARENCY.
WILLIE?
>> ALL