Trading Firm Bankrupted After Machine-Learning Algorithm Tracking r/wallstreetbets Learns How To YOLO On Weekly Options September 16, 2020 NEW YORK – Amid continued revelations over the outsized influence of Reddit’s r/wallstreetbets on the market, machine-learning trader Cedar Hill Capital declared bankruptcy this week after their algorithm learned how to YOLO 100% of the firm’s funds on a NKLA option expiring the next day. “As Bloomberg recently reported, the market’s big players are all watching and scraping popular forums like r/wallstreetbets for retail trading sentiment analysis,” our market expert noted. “The most advanced use machine learning to predict what moves the traders on Reddit might make next. After just a few hours of studying the forum, bankrupted Cedar Hill’s algo learned to spend literally every dollar the fund had, plus margin and an advance on the company credit card, on 0DTE 9/11 $45 NKLA calls which expired worthless several hours later.” Observers were quick to point out that Cedar Hill’s algorithm had done exactly what it was designed to do in modeling the behavior of a r/wallstreetbets user. Before being discontinued, the algo posted a screenshot of its billions in losses to the forum and spent the next day suggesting that other users’ wives had boyfriends.