This past week, another social media trend started on the Reddit forum r/wallstreetbets, which aims to initiate a large silver short squeeze in order to push the price of the precious metal to $1,000 per ounce. However, the silver squeeze trend comes with controversy, as numerous wallstreetbets supporters believe hedge funds like Melvin Capital and Citadel are behind the silver push.
The Controversial ‘Silver Squeeze’
During the last week, news.Bitcoin.com reported on the wallstreetbets (WSB) saga taking place on social media forums and the infamous subreddit r/wallstreetbets. Since the mega short squeeze on the Gamestop (GME) shares, the squeeze maneuver has also spilled into a number of other stocks. This week, shares from the Russell 3000 Index (RUA) were targeted including tickers like NOK, GOGO, AMCX, and FIZZ. But the trend didn’t stop there, as one post, in particular, had called for a “silver squeeze.” The WSB Reddit post called for the silver squeeze to push the price of silver from $25 per ounce to $1,000.
Now since the post was published, the Reddit admins in charge of moderating r/wallstreetbets removed the post. But that was long after the message was made viral by the participants discussing the pros and cons of attempting to squeeze silver. Now the reason people think the silver short squeeze post may be shady, is because a number of WSB Redditors believe the silver squeeze was invoked by the hedge funds losing money in order to cover their GME losses. There are a great number of Reddit posts warning that people should not participate in the silver short squeeze.
One post said:
Citadel is the 5th largest owner of [silver], it’s imperative we do not ‘squeeze’ it. These are hedge fund bots spamming awards.