Dani C.
Yelp
Wall Street, GameStop, and The Pink Palace, OH MY!
In 1922, Clarence Saunders, founder of Piggly Wiggly, began building a 36,500 square foot mansion faced with pink Georgia marble. In 1922, professional investors attempted a "Bear Raid" short selling Piggly Wiggly stocks. Saunders faught back by borrowing $10,000,000 to buy the stock and drive the price up.
Almost 100 yrs later in Jan 2021, a large hedge fund company thought GameStops stock was gonna fall. Melvin Capital BORROWED large #'s of shares, betting the price would drop. But a group of online traders decided to fight the Wall Street giant with a "bear squeeze" buying stock in GameStop and raising the price from $20 per share to $140. Melvin Capital was forced to spend billions buying GameStop shares.
However, in 1923, Saunders lost his battle with the New York Stock Exchange. They halted the trading of Piggly Wiggly stock, giving the short seller time to buy the few outstanding shares and settle their "Bear Raid" without buying from Saunders. This left Saunders with a majority of shares that were worthless because they couldn't be traded. He declared bankruptcy, and never finished his home.
In the case of GameStop the online trading houses also stopped trading GameStop making it difficult for investors to trade in their stock.
So what happened to Saunder's home? The land was sold to developers. The unfinished mansion was donated to the City of Memphis, which turned it into a museum. It opened in March 1930 as the Memphis Museum of Natural History and Industrial Arts. The public, though, still called it "the Pink Palace," and in 1967 the museum formally became the Memphis Pink Palace Museum.