After the internet and stock market blew up over GameStop, the video game retailer’s stock has brought in some very high stakes. The surge in trading valued up GameStop by more than $10 billion.
Alexandria Ocasio-Cortez, US Representative stated that the House inquiries into the freezes need to be extended beyond Robinhood and that the committee should “examine any retail services freezing stock purchases,” especially those allowing sales, but freezing purchases.
Taking to Twitter, she voiced the same:
This is unacceptable.
We now need to know more about @RobinhoodApp’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit.
As a member of the Financial Services Cmte, I’d support a hearing if necessary. https://t.co/4Qyrolgzyt
— Alexandria Ocasio-Cortez (@AOC) January 28, 2021
Elon Musk, billionaire, founder of SpaceX, Tesla, PayPal and many more has also voiced his concerns regarding the GameStop madness in support of United States Representative Alexandria Ocasio-Cortez’s rallying cry against the stock trading application Robinhood. He tweeted about this and called shorting a ‘scam’.
u can’t sell houses u don’t own
u can’t sell cars u don’t own
u *can* sell stock u don’t own!?
this is bs – shorting is a scam
legal only for vestigial reasons
— Elon Musk (@elonmusk) January 28, 2021
Robinhood was among other trading platforms that very quickly blocked clients from purchasing shares of some companies whose stock prices spiked very high because of Robinhood itself being a shareholder in some of them.
Some intra-day traders hatched the plan on social news aggregation website Reddit and together bought shares and options in large numbers and were supposedly trying to challenge Wall Street’s dominance o the stock market. The resulting hike negatively impacted several major hedge funds who had heavily shorted these stocks.