The Wall Street Bets saga, an incredibly ridiculous story about a group of amateur investors in Reddit who beat the Wall Street hedge funds in their own game, has to be turned into a movie.
According to a report The online news site Deadline on Jan. 31 won Metro Goldwyn-Mayer (MGM) the rights to produce the film in a bidding war involving major Hollywood movie houses.
The film will be based on a book proposed by author Ben Mezrich. Mezrich’s previous work, “The Accidental Billionaires: The Founding Of Facebook, a Tale Of Sex, Money, Genius and Betrayal”, was adapted into the movie “The Social Network”.
The title of his planned latest book offering is called “The Antisocial Network, “ the report said, citing sources familiar with the development. The book is expected to be released to publishers later in February, it said.
However, it is not yet clear what form or structure the film will take. MGM’s Michael DeLuca will produce the film. DeLuca also produced the Academy Award-winning The Social Network. Cameron and Tyler Winklevoss will executive produce through their Winklevoss Pictures production company.
The Wall Street Bets group noted that there had been large hedge funds on Wall Street placing short bets against companies they thought were dying. The funds were mainly focused on Gamestop, the world’s largest video game retailer, which continuously shorted the company’s stock.
But the Redditors saw an opportunity to turn a profit and jointly bet the other way by buying stocks and stock options. As a result, the value of Gamestop shares rose by more than 2,600% in January.
Hedge funds that went short on shares took losses of up to billions of dollars. One fund, Melvin Capital, reportedly lost up to $ 7 billion in the “short squeeze” in January, requiring it to restructure its investment portfolio to provide a faster escape in future “squeezes”.
The Reddit traders also expanded the pump to a few other stocks considered dead ends, including AMC (which rose more than 900% in January), as well as Nokia and Blackberry. This spate of activity sparked a great deal of controversy when the trading app Robinhood began restricting trade in certain stocks.
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