Breaking: Robinhood Delists $GME Amid Price Surge, Calls For Class Action Lawsuit Grows as US Congresswoman AOC Demands an Investigation

Published January 28, 2021 | Updated January 28, 2021

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Breaking: Robinhood Delists $GME Amid Price Surge, Calls For Class Action Lawsuit Grows as US Congresswoman AOC Demands an Investigation

Robinhood, the popular trading app has announced the delisting of popular Gamestop (GME) stocks after restricting its trade yesterday to sell only. The decision received heavy backlash from everyone especially the crypto community.

Robinhood trading app also faced multiple outages yesterday owing to the surge in price and high trading volume on the spot and heavy liquidation of short positions, at one point more than $13 billion.

Gamestop stocks have become the talk of the town post its price surge yesterday over $300 which was largely pushed by a Reddit group wallstreetbets in what eventually turned into retail vs banker trade battle.

Nasdaq came to many short buyers’ rescue when it halted the trade of GME tokens calling it a manipulation owing to its social media hype. Robinhood followed the suite and halted all buy trades for spot and options.

AOC and Ted Cruz Calls For Investigation Into Robinhood Blocking GME Trading

Robinhood has got itself into hot waters that might lead up to its closure as the demands for criminal action lawsuit against the trading app has caught the attention of US Congresswoman Alexandria Ocasio-Cortez who called for an investigation into the trading app for blocking GME stocks trade at the peak of its price for retail investors while hedge funds can still trade it freely without any restrictions.

The Congresswoman went onto the point that the investigation won’t be limited to Robinhood and would include other exchanges following a similar practice.

Inquiries into freezes should not be limited solely to Robinhood.

This is a serious matter. Committee investigators should examine any retail services freezing stock purchases in the course of potential investigations – especially those allowing sales, but freezing purchases.

The congresswoman call for an investigation into Robinhood and other exchanges resorting to the blocking of GameStop trade has also resulted in a very rare moment when Republican Senator Ted Cruz agreed with AOC to pull up Wall Street for dictating terms over retailers.

Robinhood Draws Heavy Backlash Amid Calls For Decentralization

The decision by the robinhood trading app didn’t go down well with many especially the crypto community who were rooting for Gamestop to liquidate more short positions. The delisting and halting of trade also rose the demands for a more decentralized platform where it is not driven by a monopoly of a few at the top.

The crypto community was rallying behind GME as it shares a similar belief of shorting the bankers and was already calling for the company to invest in bitcoin and list their stocks on crypto exchanges via tokenization.

Many believe that Wall Street has resorted to bullying tactics as they are losing the trade game against retailers.

All eyes are now on Gamestop to see what they do next with multiple trading platforms resorting to halt their stock trades as well as delist them.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.
Prashant Jha 530 Articles
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.
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