Reuter's reports that "regulators may scrutinize GameStop's Reddit-driven retail stock surge." In other words, the wrong people made money.
The U.S. Securities and Exchange Commission said in a statement on Wednesday the agency was "actively monitoring" market volatility without offering specifics. The Southern District of New York, which could have jurisdiction over a criminal case, declined to comment.
Wild swings in GameStop's shares led the New York Stock Exchange (NYSE) to halt trading in the company several times this week. But lawyers said there was sufficient marketplace confusion to warrant a longer suspension.
On Wednesday, the Massachusetts state regulator, William Galvin, called on NYSE to suspend GameStop for 30 days to allow a cooling-off period. "This isn't investing, this is gambling," he told Reuters in an interview. "This is obviously contrived."
[Image by Dwight Burdette – Own work, CC BY 3.0]