Retail traders on the Reddit forum WallStreetBets are asking each other to stop selling their GameStop shares, after the company’s shares continued to sink.
Shares in GameStop are now worth just US$53.50, a dip of 42.11 per cent on the previous day - a far cry from their 13 January high of US$348 per share.
But while the conversation on the Reddit forum initially showed camaraderie, traders are beginning to lose their cool, with one thread in particular titled, ‘Stop f***ing selling!!!! You’re f***ing it up for everyone’.
One Reddit user commented, “We have the advantage. All we have to [do] is buy and hold shares”.
But others weren’t so keen, saying, “At the end of the day, it is every man for him or herself”.
“We can do all this unified movement, but when push comes to shove, nearly everyone will put themselves as priority before the mass,” one user said.
“And you know, the big boys are fully aware of this. Crowds eventually die down and everyone goes home.”
GameStop has now shed over US$30 billion in market cap, losing nine-tenths of its value since last week. Now, its market value is around US$3.7 billion.
Cinema chain AMC, another stock that Reddit users were attempting to short squeeze, has also lost around 80 per cent of its value in the past week.
It comes as US Treasury Secretary Janet Yellen said she and financial market regulators needed to “understand deeply” what happened in the recent retail trading frenzy before taking any action.
Robinhood rating plummets
US trading platform Robinhood’s rating has since gone down to one star on Google’s mobile app store for the second time in a week, after furious users left negative reviews in retaliation to the platform’s GameStop freeze.
Last week, Robinhood revealed it would freeze users from buying GameStop shares and other stocks vulnerable to a short squeeze.
Robinhood said it made a “risk-management decision” amid “extraordinary circumstances”, but the move didn’t sit well with investors, politicians or Tesla CEO Elon Musk.
While the company has increased the amount of shares in GameStop traders were allowed to purchase, that hasn’t stopped furious users from attacking the app’s reputation.
Google intervened in the first instance, wiping out over 100,000 negative reviews, but has made the decision to stay out of the chaos this time.