Per CBS “small investors using a Reddit forum appear to have driven the stock of the struggling retail chain GameStop up nearly 800% and it’s causing some major financial losses for seasoned Wall Street investors.”
Now Robinhood has halted buying Gamestop and other equities that were being snapped up by small investors to try to create another Gamestop scenario.
RobinHood made the following announcement.
Interactive Brokers told CNBC “As of midday yesterday, (1/27/2021) Interactive Brokers has put AMC, BB, EXPR, GME, and KOSS option trading into liquidation only due to the extraordinary volatility in the markets. In addition, long stock positions will require 100% margin and short stock positions will require 300% margin until further notice. We do not believe this situation will subside until the exchanges and regulators halt or put certain symbols into liquidation only. We will continue to monitor market conditions and may add or remove symbols as may be warranted.”
Dave Portney tweeted “Either @RobinhoodApp allows free trading like they say they do or they die. It’s really that simple. #ddtg”
— Dave Portnoy (@stoolpresidente) January 28, 2021