Robinhood has halted the trade of GameStop, AMC, Blackberry, Nokia after r/Wallstreetbets managed to launch Gamestop’s stocks to record heights after hedge fund short sellers made bets against it.
“We continuously monitor the markets and make changes where necessary. In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AMC, $BB, $BBBY, $EXPR, $GME, $KOSS, $NAKD and $NOK. We also raised margin requirements for certain securities,” announced Robinhood.
The restrictions raised staunch criticisms on social media and accused Robinhood of colluding with the hedge funds managers.
“THEY DONE TOOK $GME AND $AMC OFF ROBINHOOD,” said one while another said, “Either #Robinhood allows people to trade freely in the market or they will lose millions of users #ToTheMoon #GME #AMC #NAKD.”
Shares of GameStop went up by more than 400% this week and nearly 1,750% this year after trading rookies from r/Wallstreetbets invested in stocks shorted by hedge funds which squeezed the stocks higher as the institutions rushed to cover their losses.
r/Wallstreetbets also piled in on AMC Entertainment and raised it to 300% this week.
Hedge fund Melvin Capital closed out its short position in GameStop last Tuesday after taking a $23 billion loss this month.
Secretary of the Commonwealth of Massachusetts William Galvin suggested that platforms should halt trading for an entire month to “help stabilize” the chaos from the frenzy.
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