GameStop stock price crashes as Robinhood app restricts trading, Wall Street reacts to short squeeze
GameStop shares have sunk as trading platforms including Robinhood and Interactive Brokers restricted trading in the video game retailer along with AMC Entertainment, Blackberry and other stocks that soared this week in a social media-driven trading frenzy that shook stock markets.
Key points:
- GameStop gains have forced short-sellers to buy back stock to cover potential losses
- GameStop briefly became the biggest stock on the Russell 2000 index of small caps
- The dramatic jumps in the stock price of some companies drew calls for regulatory scrutiny
GameStop, the US video game chain whose 1,700 per cent rally has been at the heart of a battle between small scale “retail” investors and hedge funds over the past week, lost half its value in early…
