Reddit army on to hedge funds chained by risk models


The Reddit logo is seen on a smartphone in front of a displayed Wall Street Bets logo. - Reuters

NEW YORK: A hellish week for hedge funds will be remembered for how much damage Reddit traders caused by chasing a handful of the most-shorted names in the US$43 trillion US stock market.

But just why were the institutional pros forced to downsize their market exposures at the fastest pace since the pandemic-spurred March rout?

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