Finance & EconomicsPartially True
GameStop short squeeze (Jan 2021)
In January 2021, retail investors coordinating on Reddit's r/WallStreetBets forum drove GameStop (GME) shares from $17.25 to an intraday peak of $483 on January 28, squeezing Melvin Capital's estimated $5.5 billion short position. On January 28, Robinhood and eight other brokers restricted buying in GME, citing DTCC margin-call requirements. Retail investors alleged that Robinhood's payment-for-order-flow relationship with Citadel Securities — which also provided a $2.75 billion rescue to Melvin Capital — constituted a conflict of interest. The SEC published a 45-page market volatility report in October 2021. Congressional hearings in February 2021 featured Robinhood CEO Vlad Tenev, Citadel's Ken Griffin, Reddit's Steve Huffman, and Keith 'Roaring Kitty' Gill.