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GameStop stock rally costs some locals money

Many smaller investors found themselves unable to trade the surging stock after some brokers placed restrictions on certain transactions.

WASHINGTON — Some locals say they are frustrated with the way smaller investors have been treated while trading shares in the stock market.

The ascendant rise of GameStop stocks grabbed headlines across the world this week. The video game retailer has seen its stock price increase by more than $300 a share in the last month.

Last year, wealthy hedge funds looked to profit off the company by planning for potential misfortune. Many firms positioned themselves to make money off GameStop if its stock price were to go down by shorting the company on the New York Stock Exchange.

RELATED: Robinhood restricts stock trading in GameStop, sparking outcry

But that plan ultimately backfired after smaller investors encouraged people on social media to buy GameStop stock for themselves. 

Ultimately, a popular app named Robinhood, which was used by many people to trade stocks like GameStop, decided to halt trading of the company Thursday. Robinhood cited "market volatility" as the reason that led to their decision.

A local man, who goes by the name "Benny Bitcoin", said Robinhood's decision cost him money.

“I made a couple hundred yesterday," he said. "And, now, it's all gone. It's like it's frozen."

Benny Bitcoin was so disappointed in Robinhood's decision that he decided to hold a small protest outside the Securities and Exchange Commission Thursday afternoon.

RELATED: What's going on with GameStop, AMC and the stock market? Expert weighs in

“The SEC should act and if they don't, people are going to leave the stock market," he said.

Thursday's developments on the stock market also got politicians on Capitol Hill to agree on something. Both Democratic Congresswoman Alexandria Ocasio-Cortez and Republican Senator Ted Cruz called for a hearing into Wall Street practices.

Democratic Senator Sherrod Brown later tweeted that the Senate would in fact hold a hearing on the matter.

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