Employees and everyone else are bag holders. This was just a way for executives to get paid. I give it 2 years before Reddit is acquired by Microsoft or someone who wants to use it as a repository of training data.

Why wouldn't they? It's been pumped up way beyond the IPO price that they and the bankers thought was reasonable.

Even if you are bullish long-term, it makes sense to cash out while it's overbought and buy back later.

Also, keep in mind 500,000 shares might sound like a lot to us, but it's not even close to a majority of their position.

Looking at this as a signal as to whether you should hold as an employee would be silly.

Employees should always sell their shares as soon as they are able. Not a dilemma at all. There's no point in concentrating your risk in a company you already rely on for your regular pay.

Employees will be in lock up for 180 days from IPO date, so they have some time before they can sell.