Robinhood Resumes Squeeze Stocks Trading; GameStop and Koss Pops
Shares of GameStop (NYSE: GME) and other short squeeze stocks bounced back once again as Robinhood announced to resume trading of these stocks after limiting trading on Thursday.
The broker also expressed that their move of halting squeezed stocks trading is not made at the direction of any hedge fund or market maker.
“We just hadn’t seen this level of concentrated interest market-wide in a small number of names before,” Tenev said. “We understand our customers are upset.”
However, the CEO and co-founder Vlad Tenev said they have to follow financial, SEC, and clearinghouse deposits requirements, which fluctuates based on increased volatility.
“Some of these requirements fluctuate based on volatility in the markets and can be substantial in the current environment. These requirements exist to protect investors and the markets and we take our responsibilities to comply with them seriously, including through the measures we have taken today,”
Gamestop, Koss, and Other Short Squeeze Stocks Pops
After seeing massive losses in Thursday trading, shares of the gamma squeezed stock rallied in post-market trading after Robinhood announced to resume trading. GME shares are still up almost 1750% since the beginning of this year only due to war between Reddit’s WallStreetBets army and short selling hedge funds.
Koss Corporation (NYSE: KOSS) stocks fell 27% on Thursday trading but shares of stereo headphones and accessories providers bounced back strongly by 60% in post-market trading. Shares of KOSS are up close to 1800% since the beginning of this year.
AMC Entertainment Holdings, Inc. (NYSE: AMC) stock price lost half of its value in Thursday trading due to limits on trading. Nevertheless, the stock price recovered half of those losses in the post-market trading.