Robinhood Lifts Trading Restrictions on Gamestop and AMC Stocks

Robinhood said it has removed trading restrictions on GameStop and AMC stocks, which have been the basis of the battle between the small traders who organized on Reddit and short sellers, according to an update on the trading platform’s support page.

Robinhood’s move comes one day after it increased restrictions on the purchases of the two stocks, and trading volumes in the two stocks fell this week along with prices.

GameStop is down 84% so far this week while AMC is losing 47% as retailers flock to other corners of the stock market, such as small drug developers.

Stocks rose in late January, as a group of small investors belonging to the WallStreetBets forum on Reddit sought to stave off short selling.

Robinhood’s temporary restrictions on Reddit Group’s favourite stocks last week sparked outrage among day traders who said the brokerage firm had sided with hedge funds and institutional money, in order to shore up its capital amid the trading frenzy, the trading app operator had to borrow or raise billions of dollars.