Robinhood Gets Extreme Backlash for Removing AMC and GameStop Stock

Discount brokerage firm Robinhood is getting some extreme backlash for removing GameStop and AMC stock, amid the Reddit-fueled surge of the stocks. According to Markets Insider, Robinhood has informed its clients that they can close out positions in the affected stocks, however, the company added that clients can not purchase additional shares. Among the companies affected by the restrictions, aside from GameStop and AMC, are BlackBerry, Bed Bath & Beyond, Express, Koss, Naked Brand, and Nokia. Robinhood also reportedly lifted margin requirements for certain trades, making the changes just before the market opened on Thursday. In a press release, the company said, “We continuously monitor the markets and make changes where necessary.”

The bizarre situation with GameStop arose this past week when it was discovered that the online amateur investors from the Reddit subgroup called r/wallstreetbets, also known as WSB, had purchased a bunch of the company’s stock in a short sale. NBC News sums up the situation by writing, “Never before has a group of amateur investors taken on a hedge fund like this and won. The battle over GameStop has taken on something of a David vs. Goliath feel.” The outlet went on to cite examples of some politicians, such as Sen. Elizabeth Warren and Rep. Alexandria Ocasio-Cortez, who have laid the blame on Wall Street for disenfranchising the public for many decades. Scroll down to see what people on Twitter are saying about Robinhood ending GameStop and AMC stock sales.

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“These MFers are protecting the hedge funds, IMO. They’ve been getting rich for DECADES off the little guy who loses his house in the market, but when it happens to them they have the power to stop us from trading. It’s the biggest SHAM in our country,” one Twitter user wrote.

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“The app is also canceling prior purchases and acting as if the consumer made the decision but money is not being returned to bank accounts!” another said.

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“Seriously. I’m not shedding a tear for anyone involved in playing this game, but when the trading houses basically step in to protect the portfolio profits of hedge funds at the expense of retail investors, that is [Prima facie] rigging the system. Has to be investigated,” someone else said.

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“These apps like [Robinhood] market themselves as trading platforms for the independent investors. But now you can see who they are really looking out for,” another wrote.

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“It’s market manipulation of market manipulation in response to market manipulation. Only answer, no more shorting stocks for anyone. They play with [companies’] value to make money and no care for the company. It’s wrong,” someone else said.

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“Robinhood should probably rename their app King John right?” one user chimed in.

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“Robinhood and TD Ameritrade should face severe consequences for the stunt they pulled today, absolutely ridiculous!” another said.