GameStop Stocks Frenzied Trading Legal Case - Report.
2021-02-15 | Mike Hallen
![GameStop Stocks Frenzied Trading Legal Case - Report.]()
The CEOs of Robinhood, Citadel, Melvin Capital as well as Reddit will testify at a United States House Committee on Financial Services hearing
within the week concerning issues
around the recent frenzied trading of stocks like GameStop.
Later on 18
th Feb., the virtual hearing is about
to research how retail trading pushed the stock from trading below $20 USD at
the starting from January to around $340 USD at
the end of the month,
consistent with a new York Post
report on Saturday.
Additionally, Reddit's online trading community r/WallStreetBets assisted pump share prices for GameStop as well as other firms within a bid to punish short-sellers.
Amid the surge, trading application Robinhood limited
the power of traders
to shop for GameStop as well as other stocks targeted by WallStreetBets.
Rep. Maxine Waters (D-Calif.), who will chair the hearing, added earlier "I am concerned about whether or not Robinhood restricted the trading because there was collusion between Robinhood and a few of the hedge funds that were
involved within this.”
Hedge fund Citadel is appearing as its independent securities arm
features an account with Robinhood, while Melvin Capital had
to shut its GameStop short
positions due to the price hike.
The hearing
is going to be attended by Citadel CEO Ken Griffin, Robinhood CEO Vlad Tenev, Melvin Capital Management CEO Gabriel Plotkin, Reddit co-founder Steve Huffman & Reddit user Keith Gill.
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