Retail investors have sparred with hedge fund short sellers all week over GameStop stock, and one Florida man expressed his support for the little guy by flying a “BUY GAMESTOCK STOCK” banner above Miami.
The banner also had “WSB” at the end, which stands for the popular WallStreetBets Reddit forum where day traders frequently discuss the short squeeze.
The popular meme account, “Litquidity,” posted a video of the banner. Forex Analytix founder Blake Morrow also posted a picture of the banner.
YELLEN RECEIVED $800G FROM HEDGE FUND IN GAMESTOP CONTROVERSY, WH DOESN’T COMMIT TO RECUSAL
GameStop stock is up more than 1,700% year to date as day traders have poured money into the brick-and-mortar business, bleeding out hedge fund short sellers along the way.
Robinhood, a trading platform that many retail investors use, temporarily halted Thursday the purchasing of GameStop stock and other securities targeted by the WallStreetBets crowd, incensing day traders who wanted to get in on the rally.
The platform allowed users to buy GameStop stock on a limited basis Friday.
Short sellers have lost $70 billion betting against U.S. companies this year, including $19 billion on GameStop stock alone, according to financial data service Ortex.
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Robinhood’s restrictions on buying GameStop stock led to protests outside the company’s headquarters Thursday, as well as protests at the Securities and Exchange Commission headquarters and the New York Stock Exchange.
Pictures taken by a New York Times reporter show people holding signs outside Robinhood’s headquarters in California that say “FREE GME” and “ROBINHOOD LIED.”
Robinhood co-founder Vladimir Tenev said Thursday that the platform was forced to halt trading of GameStop and other securities due to “financial requirements, including SEC net capital obligations and clearinghouse deposits.”
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The SEC, meanwhile, said Friday that it will “closely review actions taken by regulated entities that may disadvantage investors or otherwise unduly inhibit their ability to trade certain securities.”
“We will act to protect retail investors when the facts demonstrate abusive or manipulative trading activity that is prohibited by the federal securities laws,” the SEC said in a statement. “Market participants should be careful to avoid such activity. Likewise, issuers must ensure compliance with the federal securities laws for any contemplated offers or sales of their own securities.”
FOX Business’ James Leggate and Lucas Manfredi contributed to this report.