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Home NEWS Facebook shuts popular stock trading group amid GameStop frenzy

Facebook shuts popular stock trading group amid GameStop frenzy

Facebook spokeswoman Kristen Morea mentioned, “This group was removed for violating our Community Standards, unrelated to the ongoing stock frenzy.”

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Facebook Inc took down a popular Wall Street dialogue group, Robinhood Stock Traders, in a transfer that its founder on Thursday described as backlash for conversations buoying shares of GameStop Corp and different firms this week.

GameStop, AMC Entertainment Holdings Inc and BlackBerry have been on the heart of a market battle as particular person buyers coordinating on social media together with Reddit, and utilizing trading apps corresponding to Robinhood, purchased shares and squeezed hedge funds that had guess massive on these struggling firms to tank.

Allen Tran, a 23-year-old from Chicago who created Robinhood Stock Traders, mentioned he awakened on Wednesday to a notification that Facebook had disabled the 157,000-member group. The notification, seen by Reuters, mentioned with out element that the group violated insurance policies on “adult sexual exploitation.”

Also Read | ‘We love this stock’: GameStop effect spreads as calls for probe build

“We were first on the picking tree to be cut off because we are on Facebook, not a free platform like Reddit,” mentioned Tran, referring to the usually lighter moderation on the dialogue web site.

Some of his group’s members made tens of 1000’s of {dollars} in latest trades first popularized on Reddit’s Wall Street Bets discussion board, he mentioned.

Tran, who additionally runs the 20,000-member HaiKhuu Trading group on chat app Discord, mentioned he has by no means seen grownup content material on the Facebook group.

Facebook spokeswoman Kristen Morea mentioned, “This group was removed for violating our Community Standards, unrelated to the ongoing stock frenzy.” She didn’t reply to requests to elaborate.

Tran mentioned institutional buyers are attempting to separate retail merchants.

Also Read | Explainer | Why regulators may scrutinise GameStop’s Reddit-driven retail stock surge

Facebook suspended his group on Jan. 7 after labeling it a “dangerous organization,” in keeping with correspondence seen by Reuters, although the corporate reinstated its privileges after he appealed to contacts there.

“With all these major institutions being frustrated with the success of retail, they are trying to target any groups they can,” mentioned Tran, who was featured in a Wall Street Journal article in November and described his Facebook group as the biggest of its form.

Tran expressed concern {that a} substitute group he shaped to hold on discussions additionally will probably be taken down.

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