GameStop Stock Surge Explained by 'Normal Person' in Viral Video Watched 5 Million Times

A Wall Street "explainer" video posted by a comedian has gone viral, racking up more than 5 million views since Wednesday evening.

In the Twitter video "A normal person explains what's happening on the stock market," Avalon Penrose introduces herself as someone who has "a pretty good understanding of the stock market."

"I have been seeing a lot of people online who are like, 'What is going on with the stock market? Is there anyone who can explain this in normal person terms?' So I decided I wanted to do that. Because I own stocks, so I have a pretty good understanding of the stock market," she says.

a normal person explains what’s happening on the stock market:

— Avalon Penrose (@avalonpenrose) January 27, 2021

Penrose then mentions the GameStop stock boom, saying there are people who "have lots of money ... and they have hedges around their house"—making it abundantly clear the video is a spoof.

Her voice breaks and she appears to be close to tears before continuing: "And they go to the market, but it's, like, not a real market, it's a metaphor. But it's real. And they go, 'Uh oh that company's not doing well, so I'm going to make it do worse.' So they pull out some papers and they go, 'Who wants to make a deal?' And they start making deals."

The share price of retailer GameStop has rocketed by 8,000 percent in six months as members of the Reddit community r/WallStreetBets have clubbed together to thwart hedge fund short sellers that were betting against the company.

It is estimated that hedge funds, such as Melvin Capital, have lost $23.6 billion on GameStop this month as small investors continue their effort to push up the company's share price.

Their campaign has caught public attention as more people than ever invest in markets, thanks in part to trading apps such as Robin Hood that open up investment opportunities to the general public.

Actress Avalon Penrose attends Brother's Keeper premiere
Actress and comedian Avalon Penrose, pictured in Los Angeles on March 29, 2019. Her spoof 'explainer' video on the stock market has gone viral. Paul Archuleta/Getty

Penrose continues: "They say, 'If this company's good ... If it goes down then I get money from you and, if it goes up, they don't give you money.' But they don't tell you that it's not going to go up. They will make it so it goes down.

"But then there was this online reading club that was like, 'Not today, we want hedges too.'"

Tesla boss Elon Musk, an outspoken supporter of the Reddit investors, replied to Penrose's post, tweeting: "A hedge fund that shorts is a shrubbery."

Penrose, whose Twitter follower count has jumped to almost 22,000 since she shared the video, is best known as the voice of Magaera in the video game Hades.

Penrose signs off her skit: "So they went into their bank accounts and then they also went to the market and they were like 'Buy buy buy' the company and changed it a lot so now the initial people, with the hedges, have to give their hedges, I think, to the other people.

"So, yeah, if you have any questions just let me know!"