Retail Liquidity Restricted by Robinhood During GameStop Hype
During the GameStop hype, Robinhood halted buying, causing the stock price to crash from $483 to $112, crushing retail liquidity with a single purchase-restriction order.
During the GameStop hype, Robinhood halted buying, causing the stock price to crash from $483 to $112, crushing retail liquidity with a single purchase-restriction order.
On January 27, the number of independent accounts participating in GameStop trading approached 900,000, whereas at the beginning of the month it was less than 10,000.
GameStop stock price rose from its intraday low on January 8 to its intraday high on January 28, an increase of approximately 2700%, far exceeding the explanatory scope of conventional valuation models.
The SEC report disclosed that the short interest ratio of GameStop's circulating shares once reached 122% in January, caused by the same batch of shares being repeatedly transferred back and forth.
Between January 13 and 29, GameStop averaged approximately 100 million shares traded per day, which is over 1400% higher than the daily average trading volume in 2020.