Gamestop (GME) tumbles as Robinhood puts shares on “reduce only” mode, buyers fight back

Yohay Elam FXStreet

GameStop Corp (NYSE: GME) has kicked off Thursday's session with a fall after Robinhood announced it is taking several measures to limit new positions on GME options. Moreover, the trading platform announced a "reduce-only" mode on Gamestop and several other shares: AMC, BB, BBBY, EXPR, KOSS, NAKD AND $NOK.

The company says:

Regarding the theater company, see

AMC Stock Price: AMC Entertainment Holdings Inc soars 300% after raising over $300 million

The battle around short options has fueled elevated volatility in GME stock. Robinhood is one of retail traders' most popular platforms for equities, thanks to its sleek mobile interface. These shares and options have been the focus of the financial world in the past few days.

Update: GameStop Corp.(NYSE: GME) is changing hands at around $300, down by around 13% but above the lows. Buyers seem to be fighting back ahead of option expires on Friday.

More Should I buy GameStop (GME Stock) right now?

GME news

According to CNBC, "any number of large hedge funds have suffered significantly." The channel also added that Melvin Capital – which has reportedly exited its short position against the videogaming company – incurred "massive losses" An army of retail trades organized on Reddit's WallStreetBets seems to have the upper hand against financial firms.

The frenzy in GME and several other stocks has put regulators and even the White House on alert. Some worry that the frenetic action in small stocks represents a late-stage rally that signals a downfall in broader equity markets. On the other hand, the Federal Reserve refused to warn of any froth in equities, instead of focusing on helping the economy recover.

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.