GameStop shares have surged over 1,600% in January as retail investors coordinating on Reddit's WallStreetBets forum execute a short squeeze against hedge funds. The unprecedented event has upended Wall Street and raised questions about market structure.

Hedge funds that had bet against the struggling video game retailer have suffered billions in losses. Melvin Capital required a $2.75 billion bailout after losing 53% of its assets in January alone.

The phenomenon has drawn attention from regulators and lawmakers concerned about market manipulation and the potential for broader financial instability.