The Shark Tank star instructed CNBC that the WallStreetBets group had merely used a tactic typically deployed by funding professionals.
“It’s not the primary time low float or closely shorted shares have been focused,” mentioned Mr Cuban on the Squawk Field programme.
“There are various hedge funds which have made some huge cash over time concentrating on closely shorted shares. I don’t suppose that is something totally different.
“It’s simply the people who find themselves making the push aren’t who we anticipate them to be and in order that’s why I prefer it.”
“Once you convey folks out of nowhere to actually present the inefficiencies of the market, it’s factor,”
GameStock surged virtually 2,000 per cent following the group’s funding within the heavily-shorted inventory, a transfer that has punished some hedge fund managers and Wall Avenue professionals.
“So long as we’re permitting firms to commerce shares in milliseconds, how can we anticipate this to be an traders’ market?” added Mr Cuban.
“Till you modify that, you possibly can’t change what’s taking place with WallStreetBets.”
Mr Cuban mentioned that he had considerations about valuations throughout a string of asset lessons and has adjusted his personal investments to replicate that.
“I hedged the heck out of my portfolio,” he mentioned.
“There can be a deflation of some type in these considerable property and it’s going to be scary when that occurs.”