NYSE imposes short sale restriction on GameStop after 234% spike in short sales, echoing 2021 events as retail traders challenge hedge funds again.
The NYSE has triggered a Short Sale Restriction on GameStop following unusual trading activity, reviving memories of the 2021 short squeeze.
NYSE triggers SSR amid GameStop volatility
The New York Stock Exchange activated Rule 80B’s Short Sale Restriction on GameStop (GME) on May 27, 2024, after shares fell 10% from the previous close. This marks the first SSR trigger for GameStop since the 2021 meme stock phenomenon.
Retail traders regroup on new platforms
While Reddit’s WallStreetBets remains active, S3 Partners data shows encrypted platforms like Discord and Telegram are increasingly used for trade coordination. ‘We’re seeing more fragmented, harder-to-track communication channels,’ noted Ihor Dusaniwsky of S3 Partners in their May 28 report.
Bitcoin purchase adds fuel to fire
GameStop’s announcement of a $1.2 billion Bitcoin purchase on May 25 created additional volatility. The cryptocurrency surged 7% following the news, according to CoinGecko data, while GME shares rallied 47% despite poor Q1 earnings.
