Robinhood Blocks Users From Buying GameStop Stock

Robinhood Blocks Users From Buying GameStop Stock
Photo: Michael M. Santiago, Getty Images

The stock trading app Robinhood is currently blocking users from buying any more GameStop stock citing “recent volatility” as its price soared from just under $US20 ($26) at the beginning of the month to over $US300 ($390) at the end of yesterday.

“We continuously monitor the markets and make changes where necessary,” the company wrote in a blog post this morning. “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.”

Reports began spreading on Twitter ahead of the stock market opening that heavily shorted stocks like GameStop, AMC, and Nokia, all of which have been spiking in recent days amid a trading frenzy over on the WallStreetBets subreddit, were no longer available to trade. Currently, if you search for any of them on Robinhood. nothing shows up. They also appear to be excluded from the app’s built-in newsfeeds. The trading app Stash, meanwhile, now shows a warning about volatility on the GameStop page seeking to dissuade users from investing in it.

Robinhood did not immediately respond to a request for comment.

GameStop Stock Drama Continues As Price Soars And Hedge Fund Blinks

GameStop’s stock price continued to soar in after-hours trading last night to over $US300. While many are waiting for it to come crashing back down, it might be too late for some major hedge funds. With the stock still sitting at well over $US250 a share (unthinkable just...

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GameStop’s unthinkable stock price surge over the last week has been a lot of things — a feud between amateur day-traders meming on Reddit and big hedge funds placing, a case study in how untethered from reality the stock market can be — but it’s also drawn the attention of regulators and even the White House as some rich people and Wall Street insiders freak out about the right and wrong ways to gamble online.

It’s also put a big spotlight on WallStreetBets, the community of Reddit edgelords the centre of the circus. The group’s Discord server was banned last night for hate speech, and the subreddit itself was temporarily taken offline. It’s since come back, along with additional Discord servers.

Additional reporting by Lisa Marie Segarra.

Comments

  • So much for a free market.

    Hedge fund billionaires chucked a sook because they got fucked and now it all has to be shut down to protect them.

    ” Stop buying avacado toast and invest instead ”
    ” Wait not like that ”

    Make no mistake, the internet has wall street scared. These reactions are unprecedented.

    This is not going to go well for wall street.

    • There’s actually some genuine concern going around that the SEC will step in… But in favour of the soul sucking elitists, screwing any memers holding stock to bleed the hedge funds by forcing sales, etc.

      You know, even though they’re the guys who are supposed to ensure even billion dollar hedge funds play by the rules.

      • According to analysts, these past few weeks have done 70 billion in damage to shorters.

        This is unprecedented. No one has ever done damage like this to wall street. Wall street is fighting back dirty.

        • For every stock market trade, someone loses and someone wins.

          Some shorters might be $70B worse off, but there are a whole bunch of other stock market players happily taking their profits, not the least of which anyone with an existing GameStop holding who if they’re sensible have been happily unloading into the market at today’s vastly inflated prices.

          Not the least of those profit takers is one particular short seller, Michael Burry – the guy who short sold US mortgages and made a mint off the last financial crisis in the process, and whose GameStop holding now has a paper value of $250 million, give or take, up from $17 million.

          Yep, thank you nerds for making Michael Burry even richer than he already was. That’s some nice charity work for you right there.

          Of course, how much of any of this ends up being nothing but paper profits and losses anyhow, at the end of the day, is yet to be determined.

          • Yes except it seems not enough people are selling their stocks to otherwise it would plummet again. But the elites rigged the system and have government safety nets set up, they always win.

        • Also worth noting that the game is a ponzi scheme at this point, if it wasn’t from the very start.

          Most core WSB players have already cashed out their profits, and the short sellers have stop lossed their losses, so the only game we’re left with here is waiting to see which suckers are left holding the grenade when the music stops.

          The whole thing is classic 4chan hackivism at its most pointless.

          • Pointless?

            It still done more than the slacktiviss at occupy lol. Pretty sure wall street mocked you lot. Laughing at you and drinking champagne. And the ” eat the rich ” larpers could only dream of doing something like this.

            Your comment history on this situation is very telling. You seem to be the only one hostile against these people.

            Are you a hedge fund manager in disguise? Or just mad your activism has never achieved anything?

            LOL!

          • I dunno mate, is it pointless when by virtue of them holding on they’re bankrupting Wall Street’s main liquidity providers as they intended? As they themselves point out, making money isn’t the purpose, it’s making the hedge funds *lose* money that’s the goal. I’m having a good laugh at the expense of the bastards at Wall Street having their own personal GFC kicked off by the “unsophisticated traders” on Reddit who worked out how fucked Melvin was and blew a hole in that ship and are now sinking the rest of the fleet.

            Karma is such a bitch.

          • Typical fishboy. Used to his activist shit doing nothing. But when someone does something he chucks a tanty.

    • This right here. No one is trading on illegal information, nothing was hacked, everything is above board. If a hedge fund trades on speculation with billions of dollars its fine, not for the peasants though.

      • Yes basically. In saying that I’m less then a peasant, can’t afford to put a dime in stocks.. too many expenses, not enough income.

  • A report last year from analytics of Robinhood users suggested that about 75% of the userbase on that app were operating at a loss. So this probably saved quite a few people from themselves…

  • I would happily buy a short position in GameStop about now.

    There is no doubt that anyone who still thinks they’re on a winner by buying the stock today is about to turn their late to the party lols into literal pennies.

    Robinhood’s done a whole bunch of bandwagon jumpers a big favour by saving them from themselves.

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