Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Robinhood users are revolting against the trading app after it stopped trades of GameStop

Robinhood users are revolting against the trading app after it stopped trades of GameStop

Barstool Sports, along with the blog's founder Dave Portnoy, declared "war" on Robinhood. "You are scam artists," Portnoy said in a tweet.

Robinhood users are coming for the trading app's head.

Robinhood stopped allowing users to buy GameStop on Thursday morning, only allowing users to sell, following a weeks of huge gains — from being below $5 in late 2020 to over $450 per share on Thursday morning.

Users of the Reddit forum r/WallStreetBets encouraged each other to bid up GameStop's stock price, thus causing a short squeeze on the hedge funds betting against GameStop's stock value. As a result, those short-sellers lost more than $1 billion in a single day while the company's stock value shot up by hundreds of dollars per share.

On Thursday morning, citing "significant market volatility," Robinhood cut off users from trading GameStop stock (and a handful of other companies).

That decision caused a massive outcry on social media.

"Robinhood has disabled trading in $AMC $GME $NOK etc, proving that the 'little guy' was never allowed to win in a 'free market'," popular newsletter writer Joe Pompliano said in a tweet. "What a joke."




The Robinhood app listing received an influx of one star reviews on the Google Play store, causing the app to average the lowest rating.


Robinhood received an influx of one star reviews on the Google Play store.


And members of r/WallStreetBets threatened to file a class action lawsuit against Robinhood for market manipulation.

"Allowing people to only sell is the definition of market manipulation," one post on r/WallStreetBets read. "A class action must be started, Robinhood has made plenty of money off selling info about our trades to the hedge funds to be able to pay out a little for causing people to lose money now."

Robinhood, founded in 2013 by Stanford graduates Baiju Bhatt and Vladimir Tenev, allows users to trade stocks without commission. "We're proud to have created a platform that has helped everyday people, from all backgrounds, shape their financial futures and invest for the long term," the firm said in a blog post.

Instead of taking commissions on stock trades, the company says it earns revenue through a variety of other means, from financial services to a membership program ("Robinhood Gold").

Users aren't the only ones criticizing Robinhood publicly.

Billionaire Mark Cuban questioned why Robinhood restricted trading, tweeting: "So are @robinhoodapp and @IBKR ending trading in #wallstreetbets stocks because they are losing their a** on these trades? Or maybe they don't have the cash to enable the trades at this scale? Anyone have any insight on their economics?"


Barstool Sports, along with the blog's founder Dave Portnoy, declared "war" on Robinhood.

"You are scam artists," Portnoy tweeted in response to Robinhood's announcement on restricting trading. "You are crooks. You deserve to be behind bars and you know it."


Rep. Alexandria Ocasio-Cortez called Robinhood's action "unacceptable," and called for "a hearing if necessary" to determine why the company chose to "block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit."

Sen. Ted Cruz seconded Ocasio-Cortez's tweet. "Fully agree," he said.

Detroit-based CEO and philanthropist Bill Pulte weighed in as well.

"This is what you call rich people trying to confuse you with fancy words," he tweeted in response to Robinhood's statement on why it's restricting stock trades of GameStop.

Robinhood representatives didn't immediately respond to a request for comment.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
×