Crypto Is About To Short Squeeze Wall Street (GameStop 2.0)

What happened in this episode?

Lark Davis argues that a new strain of memecoin trading on Robinhood’s blockchain could create dramatic, temporary price dislocations in “stock tokens” that track US equities. He describes Robinhood Chain as an Arbitrum-based layer-2 offering tokenised real-world assets and says its flagship “stock tokens” are ERC‑20 instruments backed 1:1 by shares held with a US custodian, while emphasising that buyers do not own the underlying shares and that minting/redemption is restricted to authorised participants.

Davis says traders began pairing memecoins against stock tokens (rather than stablecoins), which can pull the tokenised stock float into liquidity pools—especially over weekends when US markets are shut and authorised participants cannot buy shares to mint additional tokens. He claims this dynamic helped push tokenised versions of names including HIMS and AMC far above their cash-market prices, but contends the effect has so far been contained: once markets reopened, issuers/authorised participants allegedly minted new tokens, collapsing premiums quickly and expanding on-chain supply.

He concludes that claims of an imminent “GameStop 2.0” short squeeze are, at present, largely marketing and misinterpretation, because the on-chain floats discussed are small relative to outstanding shares and reported short interest. Davis also claims AMC CEO Adam Aron criticised the tokenised AMC product and that Robinhood CEO Vlad Tenev replied publicly, while noting there is no official connection between the memecoins and AMC or Robinhood.

What are the key points?

• Davis says Robinhood Chain stock tokens represent a claim on shares, not legal share ownership, and minting/redemption is gated to authorised participants.
• He claims memecoins paired against stock tokens now drive a large share of Robinhood Chain trading volume.
• He describes a weekend mechanism where tokenised stock floats can be drained into liquidity pools while US markets are closed, allowing prices to detach from the underlying shares.
• Davis cites tokenised HIMS allegedly spiking far above the NYSE close, then collapsing after new tokens were minted when markets reopened.
• He argues this has not yet produced a real-world Wall Street short squeeze because current scale is too small relative to outstanding shares and short interest.
• He claims AMC CEO Adam Aron criticised Robinhood’s tokenised AMC offering and said outside securities counsel would look into it, with Vlad Tenev responding publicly.

Who is speaking?

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• Unknown (host)

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How is this page sourced?

Programme

Lark Davis

Published

6 September 2026

Duration

17m

Original episode

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