A popular Wallstreet discussion group, Robinhood stock traders, has been shut down by Facebook Inc. On Thursday, its founders described the news as backlash for conversations, this week, buoying shares of GameStop Corp and other companies.
As individual investors, Blackberry, GameStop, and AMC Entertainment Holdings Inc have been co-ordinating on Social Media platforms inc. using Reddit, have been at the center of the market using RobinHood like trading Apps. They have squeezed hedge funds and bought shares that did bet big to tank on those struggling companies.
RobinHood stock traders was created by a 23-year-old Allen Tran from Chicago. He shared waking up to the news of Facebook disabling 157,000 member group on Wednesday. As seen by Reuters, the notification highlighted without detail that the group violates the policies on adult sexual exploitation.
Referring to the lighter moderation on the discussion website, Tran said that they were first on the picking tree to be cut off because it was Facebook and not a free platform like Reddit.
Firstly popularised on the Wallstreet bets forum of Reddit, recent trades made tens of thousands of dollars for some of his group members.
HaiKhuu trading group, which is a 20,000 membered group on the Discord chat app is also run by Allen Tran and he said that he never saw any adult content on the Facebook group which was taken down.
As per the correspondence seen by Reuters, the group was taken down on 7 January after being labeled as a ‘dangerous organization’. The group was removed for violating the community standards and not because of any stock frenzy, added Kristen Morea, Facebook spokeswoman.
Tran further added that the company reinstated its privileges after he contacted there and that the major institutions are trying to target any groups to take out their frustration with the success of retail.
In one of his featured article in the Wall street journal, Tran described his Facebook group be to one of the largest of its kinds and expressed his concern that the replacement group he made for discussions might also be taken down.