Jordan Belfort, the ‘Wolf of Wall Street’, hails small investors buying shares in GameStop but warns ‘be careful’

Jordan Belfort, the ‘Wolf of Wall Street’, hails small investors buying shares in GameStop but warns ‘be careful’

Reddit day traders have recently rebelled against Wall Street short-sellers, dramatically driving upvideo game retailer GameStop's stock price.

As a result, hedge funds and other Wall Streeters that shorted the retailer have lost billions.

"It's shocking, really amazing, and gratifying to see a little bit of the pain going on the side of the hedge funds," Jordan Belfort told Sky News. "The hedge funds have been beating up little investors since the beginning of time pretty much."

Belfort, played by Leonardo DiCaprio in Marin Scorcese's "The Wolf of Wall Street," told the broadcaster that he wishes he'd come up with this strategy outsmart hedge fund managers.

Read more: The SEC is monitoring the GameStop trading frenzy. Here's why lawyers and former regulators say clamping down on the market will be tough.

But the stockbroker, who was jailed for 22 months for fraud and stock-market manipulation, is also urging small investors to tread carefully. 

"While this will be short-lived“¦ everyone's got to be really careful because it's going to be like catching a falling knife when it unravels," he told Sky News.

"The danger is that Wall Street and hedge funds especially are experts at identifying what we call 'inefficiencies in the market,'" Belfort went on.

"This is an inefficiency