FURIOUS Reddit users, who sent GameStop stock prices skyrocketing earlier this week, are now going after trading apps for restricting them.
The amateur traders, using a Reddit group to organize, worked together to send GameStop’s stock prices up 130 percent on Wednesday alone.
GameStop stock prices came tumbling down on ThursdayCredit: EPA
Users began trolling the Robinhood app, briefly tanking its Google Play ratingCredit: Google Play Store
The move sent major hedge funds reeling from what is likely billions of dollars in losses because the hike in GameStop’s stocks threw off a Wall Street practice called short-selling.
The GameStop traders caused so much stock market chaos that trading apps, like Robinhood, stopped buys on the suddenly popular stock.
But the Reddit warriors would not be deterred, and turned their attention to the trading apps getting in the way of the market manipulation.
On Thursday, Robinhood blocked users from trading stocks from GameStop, AMC and other companies that were targeted in the “Reddit rally.”
Robinhood blocked users from trading GameStop and AMC stocksCredit: AP:Associated Press
Stock prices came way down after a peak on WednesdayCredit: Google
Robinhood has since received hundreds of thousands of one-star reviews in Google’s Play Store, tanking its average rating to 1.1 stars out of five.
Google confirmed to The Verge that it was actively removing some of the negative reviews because it has a policy against rating manipulation.
As of Thursday night, the rating was hovering around 4 stars again.
The app maintained a 4.7 rating in Apple’s app store, but did have a number of negative reviews from Wednesday.
Many commenters called the name “Robinhood” into question, since the legend of Robin Hood, after all, involves a hero who takes from the rich to gives to the poor.
Many detractors accused the company of doing the exact opposite.
Social media users slammed Robinhood and other trading apps for halting tradingCredit: Twitter
Robinhood co-founder Vlad Tenev said they will allow trading on the blocked stocks again on FridayCredit: Reuters
The company was also hit with multiple lawsuits after blocking GameStop and AMC on Thursday, which caused shares to fall more than 50%.
Robinhood co-founder Vlad Tenev announced on Thursday evening that they would allow trading of the stocks they had blocked again on Friday.
“Starting tomorrow, we plan to allow limited buys of these securities. We’ll continue to monitor the situation and make adjustments as needed,” Tenev wrote on Twitter.
Tenev said that the decision to stop trading on GameStop and AMC was to “protect the firm and protect our customers,” during an interview with CNBC.
“We absolutely did not do this at the direction of any market maker or hedge fund or anyone,” he added.
Other platforms – like TD Ameritrade – halted trading on the Reddit-targeted companies as well.