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GameStop’s Plunge Erases $11 Billion as Brokers Curb Trades

  • Stock halted 19 times with trading increasingly volatile
  • E*Trade joined other brokers, curtails trading in some stocks
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Reddit's Role in the GameStop Surge
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GameStop Corp. plummeted, snapping a dizzying six-day rally and wiping out nearly $11 billion in market value after brokerages choked off demand for the stock by curbing trading on the apps used by the company’s zealous fan base.

The stock plunged 44% Thursday after Robinhood Markets, Interactive Brokers Group Inc. and others took steps to curtail activity in several high-flying stocks, including GameStop and AMC Entertainment Holdings Inc. E*Trade Financial is preventing customers from purchasing shares of both firms, according to a person familiar with the matter.