what happened
Reddit merchants are back. After licking their wounds GameStopsay (NYSE: GME) the Wallstreetbets army of individual investors is trying to ignite a new round of short pressures.
Here’s how some of the most popular Reddit shares fared on Wednesday:
Approximately
Many investors were furious when Robinhood and other brokers placed restrictions on their clients’ ability to buy shares of GameStop and other heavily shorted shares in January. These moves helped put an end to the trading rush in GameStop and other popular Reddit stocks, leading to a sharp drop in their prices.
Shares of Express, Naked Brand, AMC, Sundial and BlackBerry recovered on Wednesday. Image Source: Getty Images.
After heavy criticism from investors and regulators, Robinhood finally decided to allow uninterrupted trading in GameStop and the other stocks for which he had limited purchases. The popular trading platform said the restrictions are temporarily necessary due to the rising capital requirements set by the cleaning houses during the trading frenzy. Robinhood has since raised several billion dollars from investors to better meet the requirements should trading volumes increase again.
Now what
It looks like Reddit traders are getting ready to test Robinhood’s newly strengthened capital reserves. Since the trading platform is likely to be reluctant to set new buying restrictions due to the setback the previous time, it will be interesting to see how any possible short pressures will play out without Robinhood interfering.