Mark Cuban advises Reddit merchants if GameStop stock goes down

Dallas Mavericks owner and tech entrepreneur Mark Cuban had some wise words for Reddit merchants when GameStop Corp. fell below $ 100 a share and walked to their steepest one-day decline ever.

Shares of Texas-based video game retailer Grapevine fell a whopping 67% to $ 74.22 each on Tuesday, before rebounding. They have collapsed by a whopping 77% since Friday after Robinhood and other brokers prevented clients from making some trades as a rise in volume strained the brokers’ ability to meet clearinghouse deposit requirements.

Sometimes it is [sic] expensive to learn, ”Cuban wrote on the group’s bulletin board. “Anyone who’s been trading for a while has learned an expensive lesson they couldn’t [sic] to afford. I know that I am [sic] to have.”

EVIDENCE OF GAMESTOP MANIPULATION WILL BE HEAVY ON SEC, OTHERS

Members of the WallStreetBets group on the bulletin board site Reddit came together to squeeze short-sellers betting on GameStop’s demise. Their efforts pushed the value of GameStop shares 1,529% from Jan. 12 to last week, causing coercion for a number of hedge funds.

One such fund was Melvin Capital, which lost more than 30% in the first weeks of this year, at least in part due to its bet against GameStop. The losses forced the fund to take a $ 2.75 billion cash injection from fellow hedge funds Citadel and Point72 Asset Management.

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GameStop isn’t the only stock to have been the subject of a Reddit-induced short squeeze. AMC Entertainment Group and Bed Bath & Beyond Inc. were among the other companies that saw big surges in their stock prices triggered by a plan to stick to the short sellers. Their stock prices have also fallen sharply in recent days.

As for Cuban, his advice to the Reddit military was to stay on track in their beliefs.

“No disruption is easy or done in a straight line,” he posted. ‘Stick with it. I am a believer. “