Sen. Elizabeth Warren on Wall Street

Daniel Fowler
February 1, 2021

Thus, as its stock price shot by nearly 8,000 per cent within six months. That set off a fury on Reddit, namely subreddit WallStreetBets, which catapulted GameStop's stock more than 1,600%.

He added: "It's a wonderful opportunity for people to make money - everyone's bored and locked up - but just be careful and make sure whatever you invest in these type of hot stocks, make sure you invest only what you can afford to lose".

Retail investors using Robinhood and other apps drove the so-called "Reddit rally" that pushed up shares of GameStop Corp and other companies championed on social media platforms including Reddit, resulting in heavy losses for big hedge funds that had shorted the shares.

In September, Ryan Cohen investor and founder of Chewy bought a stake of 13 per cent in the company. United Kingdom investors should take care when trading shares in highly volatile market conditions that they fully understand the risks they are taking. Citron Research managing partner Andrew Left, a target for impassioned investors on Wall Street Bets, announced the firm would stop publishing "short reports". Google then deleted 100,000 of the negative reviews since they violated its policies, bringing Robinhood's rating back up to four stars.

"People on Wall Street only care about the rules when they're the ones getting hurt".

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"What's happening with GameStop only reminds us of what has been going on for years on Wall Street".

Speaking to Sky News, the 58-year-old said it was nice to see the little guy win for a change.

Hedge funds Point72 Asset Management and Citadel gave a US$2.75-billion capital infusion to Melvin earlier in the week, enabling it to close out that position with a large loss.

However, Robinhood is not legally bound to carry out every trade and the lawsuits will not succeed without evidence the company restricted trading for an improper reason, such as to favour certain investors, according to several legal experts.

"As a first step in reining in these abusive practices, I will convene a hearing to examine the recent activity around GameStop (GME) stock and over impacted stocks with a focus on short selling, online trading platforms, gamification and their systemic impact on our capital markets and retail investors", Waters said in a statement.

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