Small Investors Push Against Platforms’ Ban on GameStop Stock Buys

( Social media blacklisting and censorship were bad enough, but now Big Tech and Big Finance are teaming up with Democrats in government to stop small investors making money the same way the hedge fund managers too.

Over the last week, small stock investors began fighting back after broker platforms started blocking trading from retail investors on certain stocks. Most notably was the Gamestop GME ticker, which saw a rapid increase in retail investment that sank hedge funds that had shorted the failing game retailer.

As retail investors continued to pump cash into Gamestop as part of a coordinated effort originally planned on social media site Reddit, trading apps like Robinhood caved under pressure from legislators and hedge fund managers and ceased new trades on certain tickers.

Then, when angry investors began giving bad reviews to the app on the Google Play Store, at least 100,000 negative reviews were then removed with no explanation.

The situation became so disturbing that an investor in Massachusetts filed a class-action lawsuit against Robinhood soon after, on January 28, and accused the platform of “purposefully, wilfully, and knowingly removing the stock ‘GME’ from its trading platform in the midst of an unprecedented stock rise and thereby deprived retail investors of the ability to invest in the open-market and manipulating the open-market.”

It’s OK when hedge funds do it but not when retail investors do it…

The Rosen Law Firm and The Schall Law Firm, which both focus on shareholder rights, have said that they are investigating the situation and have urged investors who were affected by Robinhood’s actions to reach out to them.

After Robinhood reversed its Gamestop trading ban, retail investors came back in full force. After peaking at $469.42 per share on Thursday, the price plummeted to $132 following trading restrictions. As of Friday, prices had soared again to $325.00

The lesson?

Don’t stop retail traders from trading, or they’ll just carry on once you lift the restrictions.

Reddit retailers are also reportedly considering a class action lawsuit against Robinhood.

“CLASS ACTION AGAINST ROBINHOOD. Allowing people to only sell is the definition of market manipulation. 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 loose [sic] money now,” one post on Reddit published on January 28 reads.

After left-wing activists largely failed in their activism against Wall Street in the late 2000s, it looks like retail investors have finally found a way to make hedge fund managers sweat.