Online trading platform Robinhood removed trading restrictions on shares of GameStop Corp. and AMC Entertainment Inc. on Thursday night. “There are currently no time limits on increasing their positions,” Robinhood’s website said Thursday night.
Last week, Robinhood unleashed fury and lawsuits from some users by restricting trading in 50 highly volatile stocks that were too short. That list was narrowed to eight on Sunday, with only GameStop and AMC remaining by Thursday. Earlier Thursday, GameStop had a purchase limit of 500 shares, while AMC had a limit of 5,500 shares. The easing of restrictions comes as the massive wave raised by GameStop, AMC and others appears to be collapsing amid increasing regulatory scrutiny. After hitting an all-time high of $ 483 on January 28, GameStop shares GME, -42.11% plunged 42% on Thursday to close at $ 53.50, and is down 84% this week. Shares of AMC, AMC, -20.96% are down 47% this week, closing Thursday down 21%, at $ 7.09. Treasury Secretary Janet Yellen met with top financial regulators on Thursday and vowed to protect investors and maintain “fair and efficient markets.” The highly volatile trading was driven by online commenters, especially on Reddit, who bought shares in various companies to ruin the positions of short sellers.