Gamestop stock fall 60 percent as Reddit-driven short squeeze loses steam, as Wall Street bites back.
GameStop stock plummeted Tuesday, losing more than half of its opening value and falling to its lowest level in a week.
Shares of GameStop plunged to $90 by the end of Tuesday trading, a 60 percent loss that shaved $135 from its opening price.
GameStop stock has fallen steadily since Thursday after hitting a peak of $483, roughly 1,800 percent higher than its price at the start of the year.
Wall Street bites back
The brutal two-day stretch for Gamestop may be the death knell for a Reddit-organised crusade against hedge funds who spent billions shorting the struggling retailer’s stock, betting it would continue to lose value.
Other stocks target by Reddit traders for short squeezes also faltered Tuesday, including AMC Entertainment (down 2.6 percent), BlackBerry (1.4 percent) and Nokia (0.7 percent).
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