They wont let u short squeeze in OZ. They are listening to the conversation on this forum

Aussie Reddit traders shut down ‘short squeeze’ plot

Aleks VickovichWealth editor

Jan 28, 2021 – 5.53pm

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The Australian version of the now-notorious social media forum at the centre of the GameStop trading frenzy is cracking down on local attempts to organise a similar “market play” and has threatened to ban rule-breakers in an effort to avoid unwanted scrutiny from the market regulator.

The global financial services industry is reeling from a seemingly co-ordinated attack this week by DIY investors organising in the forum r/wallstreetbets on social media platform Reddit.

Peer-to-peer commentary and advice on the “sub-reddit” have contributed to a dizzying rally in US stocks such as electronic retailer GameStop, up more than 700 per cent over the seven days to Wednesday’s US market close, and BlackBerry, up 230 per cent since January 14.

The unexpected surge caught US short-sellers off guard, with hedge fund Melvin Capital forced to accept a $US2.75 billion ($3.6 billion) rescue package from fellow fund managers. Flushing out the fund was positioned as a deliberate goal by some vocal members of the forum.

Now, the moderators of the Australian equivalent, r/ASX_Bets, have taken a stand to prevent similar organising activity by its 33,400 members.