GameStop, the company at the center of the Reddit retail investor uprising against hedge funds, lost $27 billion of its market value on Tuesday after their stock crashed back down to Earth.
The stock price of the video game retail store had soared to a dizzying high of $347.51, skyrocketing the value of the company and costing billions to hedge funds that had bet against the company.
By Tuesday, the stock value crashed to $90 per share, less than a third of the top value and the company had lost $27 billion of market value, according to the Los Angeles Times.
The battle between the Reddit crowdsourced retail investors and the professional investor class seized headlines after some complained of market manipulation when a popular stock market app restricted users from buying the stock. Robinhood's CEO later denied accusations that he was trying to help the hedge funds by shutting down trading.
Critics called for Robinhood to be investigated over the incident, while others were satisfied with the explanation from the CEO that the company needed to shore up its capital amidst historically high volatility in the market.
Despite the value of GameStop falling precipitously from its high, its $90 price tag is still many times higher than its value of $4 per share a year before the "short squeeze" campaign by retail investors.
While some have called the crowdsourced uprising from retail and amateur stock traders against the professional investor class a David and Goliath story, others have noted that there are signs other hedge funds were able to cash in on the rebellion.
One hedge fund that reportedly lost billions over their bet against GameStop simply obtained a bailout from another hedge fund, and other companies appeared to buy in to the stock on the way up and profited by its rise.
Ortex, a market data analysis company, said the Reddit investor rebellion signaled a shift of power in the investment community.
"Regardless of the final outcome, the GameStop saga points to an increasing democratization of the markets, with fairer access and a more level playing field," the company said in a blog post. "The information advantage that has maintained the status quo for so long is crumbling, and that has far-reaching consequences for investing, markets and the industry itself."
The broader market saw large gains Tuesday.
Here's more about the GameStop Reddit uprising:
GameStop stock extends losses in sell off www.youtube.com