GameStop Halted After Morning Tumble as Trade Unwinds By Investing.com

© Reuters
© Reuters

Investing.com — GameStop Corp (NYSE:) was halted for volatile trading after tumbling 50% earlier on Tuesday.

The short squeeze in certain stocks appears to be unwinding. Shares of GameStop erased the worst of the decline but are still down around 39% at midday. AMC Entertainment Holdings Inc (NYSE:) is down 33%, Express Inc (NYSE:) was down 32%, while BlackBerry Ltd (NYSE:) fell 18%. Meanwhile, the is up 600 points.

Last week, these stocks soared as retail traders using a Reddit forum and the mobile trading app Robinhood pitted themselves in a fight against hedge funds that had taken a negative view on the stocks by selling them short. Citron Research and Melvin Capital exited their short positions after being squeezed out.

Some other investors took advantage of the run-up in shares. Private equity firm Silver Lake converted a $600 million bond in AMC last week into shares of the movie theater operator, then sold the shares near their high of $19.90 on Wednesday.

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