Self-induced consensus of Reddit users to characterise the GameStop short squeeze.

ABSTRACT: The short squeeze of GameStop (GME) shares in mid-January 2021 has been primarily orchestrated by retail investors of the Reddit r/wallstreetbets community. As such, it represents a paramount example of collective coordination action on social media, resulting in large-scale consensus formation and significant market impact. In this work we characterise the structure and time evolution of Reddit conversation data, showing that the occurrence and sentiment of GME-related comments (representing how much users are engaged with GME) increased significantly much before the short squeeze actually took place. Taking inspiration from these early warnings as well as evidence from previous literature, we introduce a model of opinion dynamics where user engagement can trigger a self-reinforcing mecha

SUBMITTER: Mancini A 

PROVIDER: S-EPMC9374300 | biostudies-literature | 2022 Aug

REPOSITORIES: biostudies-literature