January 29, 2021
Short squeeze volatility continues
The share prices of GameStop and AMC declined yesterday by 44% and 57%, respectively, before largely rebounding at open this morning. The volatility was driven in part by online brokerage platforms (e.g. Robinhood) restricting certain transactions related to stocks involved in short squeezes this week. Robinhood, which faced significant backlash following the restrictions (including a class-action lawsuit and criticism from several lawmakers), announced plans to partially ease the limitations after raising $1B from investors and tapping its credit line yesterday.