Online bots might have played a larger role in GameStop’s recent stock market inflation saga than spectators once thought. The often-troubled video game retailer found itself thrust into the headlines in late January thanks to investors on Reddit's r/WallStreetBets forum snatching up the company’s shares ahead of hedge funds and sending its market value into a whirlwind of rapid stock price spikes.
The ramifications of this phenomenon are still unfolding even a month later, with major celebrities and public figures like New York congresswoman Alexandria Ocasio-Cortez and former The Daily Show host Jon Stewart weighing in on the struggle between the armchair investors of Reddit and the larger hedge fund suits of Wall Street, and even the Biden Administration has promised to look into the situation. While human investors are very much the driving force behind it all, new developments hint that bots may have played a significant role in the ongoing drama behind GameStop, r/WallStreetBets, and the broker app Robinhood – which also set off a great deal of backlash following a move to restrict stock prices in the wake of the mass buyouts.
As reported by Engadget.com earlier today, cybersecurity investigation firm PiiQ Media has discovered that several users had employed social media bots to promote GameStop, Dogecoin, and other "meme" investments on platforms like Facebook, Instagram, Twitter, and YouTube over the past few weeks. These bots, which number in the thousands according to PiiQ’s findings, spammed keywords like “GME” (which is GameStop's stock symbol) and "hold the line" (a common phrase used among r/WallStreetBets and its supporters throughout the GameStop ordeal) starting from the start of trading and increasing in intensity as said trading went on.
This is hardly the first time bots have played a decisive role in video game-related headlines, as console scalpers have employed them to snatch up systems like the recently released PlayStation 5 as soon as online retailers could get them in stock. So far, Reddit CEO Steve Huffman has denied that bots have played a significant role in the recent GameStop stock buying spree, but it’s worth noting that he only has knowledge of bot activity within Reddit itself.
While the recent GameStop stock investment saga has drummed up plenty of support from both major political figures and outside observers alike, the fact that bots could have made such a world-shattering impact on a major corporation’s financial situation raises more than a few troubling questions going forward. In the meantime, it looks like the ongoing conflict between small-time internet investors and big-name capitalists has as many twists and turns as the plots to many of the video games GameStop makes its business selling.
Source: Engadget.com