Sen. Elizabeth Warren (R-MA) authored a letter to the Securities and Exchange Commission Friday in which she begged the regulatory agency to “act” against and “address” the trades made by small-time investors who aggravated Wall Street by performing a “short squeeze” on Gamestop stocks that were supposed to net a massive profit for billionaire hedge fund managers.
Elizabeth Warren, who failed to convince voters that she was an opponent of Big Business after her numerous big money donors were revealed during the 2020 Democratic presidential primary, seemed to strike a tone of desperation in Friday’s letter, which demanded an explanation for why the SEC had not cracked down sufficiently on supposed “market manipulation” by small-time investors.
“Casino-like swings in stock prices of GameStop reflect wild levels of speculation that don’t help GameStop’s workers or customers and could lead to market instability,” Warren wrote. “Today I told the SEC to explain what exactly it’s doing to prevent market manipulation.
“I am deeply concerned that these casino-like swings in the value of GameStop and other company shares are yet another example of the gamesmanship that interferes with the ‘fair, orderly, and efficient’ function of the market,” Warren stated in the letter.
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Outraged users flooded Google Play Store to give Robinhood one star ratings, accusing the app of “manipulating the stock market” when it restricted trading of GameStop, AMC Entertainment, Nokia, and other “volatile” stocks.
These trade restrictions were a response to Gamergate 2.0, a name given to a movement of investors on Reddit who decided to buy up shares of stocks that major mutual funds commonly bet against.
“Robinhood came under intense scrutiny on Thursday, after the stock trading app announced it would block purchases of GameStop, AMC, and other stocks made popular by the r/WallStreetBets subreddit,” reported The Verge.
This naturally led to upset investors leaving one-star reviews for the app, but by Thursday night Google had deleted nearly 100,000 of these reviews.
Of course, mass deletion of reviews by outraged users will only solidify their opposition, like sand seeping through the cracks of a closed fist.
“It turns out [the] Robinhood app is the biggest frauds of them all,” said Dave Portnoy, a trader at the center of Gamergate 2.0 and a major critic of Robinhood. “’Democratizing finance for all’ except when we manipulate the market cause too many ordinary people are getting rich.”
Robinhood said that decision to halt purchases was “a risk-management decision.”
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