SeminarFinancial System Workshop

Tue, Dec 5, 2023

Financial System Workshop:Did the Game Stop for Hedge Funds?


Did the Game Stop for Hedge Funds?


Can retail investors on social media platforms effectively target hedge fund short positions? We show that the disclosure of hedge fund short positions drives social media activity on WallStreetBets. Social media activity in turn precipitates price increases for heavily shorted stocks. The resultant short squeezes hurt hedge funds, which respond by shorting less aggressively, leading to prolonged overpricing in the stock market. In line with a causal interpretation, the impact of social media on stock returns manifests around the publication dates for short sales, but not around the settlement dates, and attenuates during trading restrictions imposed by Robinhood.

Date and Time

Tuesday, December 5,2023 10:30-12:00


Seminar Room 2, 1F of Economics Research Annex (Kojima Hall)


Melvyn TEO
Deputy Dean (Faculty & Research)          
Professor of Finance
Lee Kong Chian School of Business, Singapore Management University