The Robinhood app halted the buying and selling of AMC stock on June 2, 2021.
The AMC stock was halted on June 2 while trading at an all-time high. Robinhood users took to social media claiming that the app deliberately stopped trading of the stock due to a surge.
Misbar’s investigation discovered that while the AMC stock was halted during a massive surge on June 2, 2021, Robinhood wasn’t responsible. The halt was automatically triggered by the New York Stock Exchange due to volatility.
The stock surged by more than 90% over a short period, which prompted the halt. The surge has been attributed to the company’s offer of free popcorn to its investors who sign up for its company newsletter.
Robinhood tweeted the following in response to the commotion: “Speculation that Robinhood has halted trading in $AMC is not accurate. Earlier today, the NYSE implemented a volatility trading pause of $AMC. Learn more about these kinds of halts here.”