Shares of AMC Entertainment Holdings (NYSE: AMC) plunged on Tuesday as brokerages moved to end the trading frenzy in the volatile stock.
In recent weeks, traders have used the WallStreetBets Reddit group and other social media sites to launch coordinated buying campaigns on a small number of heavily shorted stocks in hopes of igniting short squeezes. Several trading platforms soon found themselves unable to keep up with the soaring trading volumes -- and the corresponding regulatory deposits they were required to maintain.
In response, Robinhood and other brokerages imposed restrictions that limited investors' ability to buy shares of AMC and other volatile stocks in recent days.
Source Fool.com