General Assignment Reporter
Shares of GameStop rose to over $500 in pre-market trading Thursday morning as retail investors continued to drive the price up against the wishes of many hedge funds and other institutional investors. The full list of stocks Robinhood halted purchasing of includes GameStop, AMC, Blackberry, Nokia, Bed Bath & Beyond, Express Inc., KOSS Corp, and Naked Brand, according to CNBC.
GameStop stock had been widely shorted — meaning investors were betting the company’s share price would go down — by hedge funds and other Wall Street firms in recent months. This was largely due to expectations that the company would struggle to adapt to the video game industry’s shift to digital downloads over selling physical video game discs. By having the price shoot up through stock purchases, WSB forced those “short sellers” to take big losses on the stock.
A number of high-level figures in the finance world have called on regulators and investing platforms to get the volatile situation caused by WSB under control.
This content was originally published here.