Role of WallStreetBets: discourse platform vs. coordination hub

Ascertain whether the Reddit subreddit WallStreetBets functioned merely as a platform for financial discourse or as a coordination hub enabling a shared investment strategy among retail investors during the GameStop short squeeze.

Background

Following the GameStop short squeeze, substantial debate has focused on whether WSB primarily hosted discussions or actively coordinated investor behavior. Distinguishing between these roles is crucial for understanding the mechanisms by which social media communities can drive collective financial actions.

This study employs causality analyses across Reddit, Twitter, and market indicators to evaluate if WSB’s discussions translated into coordinated investment strategies, beyond mere conversation.

References

Secondly, it is unclear if WSB served merely as a platform for financial discourse or as a hub to coordinate a common investment strategy.

— The dynamics of the Reddit collective action leading to the GameStop short squeeze (2401.14999 - Desiderio et al., 2024) in Introduction