Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
News

Day traders make lemonade from short-selling lemons

This article is a preview of The Logic’s Daily Briefing newsletter, sent every weekday. Sign up for a free trial.

While the price of shares in meme stocks like GameStop, AMC, BlackBerry and Nokia continued to bounce around on Friday, they were less volatile than they had been during the midweek chaos. The top U.S. regulator weighed in, and tech platforms remained divided on how to respond to the frenzy. Here’s what you need to know about another weird day:

News

Day traders make lemonade from short-selling lemons

By Catherine McIntyre
Activist investor Andrew Left said Friday his firm Citron Research would stop publishing its popular short reports after its failed attempt to short GameStop contributed to this week’s trading craze. Photo: Citron Research | YouTube
Jan 29, 2021
A A
A Small A Medium A Large
Share

Share

This article is a preview of The Logic’s Daily Briefing newsletter, sent every weekday. Sign up for a free trial.

While the price of shares in meme stocks like GameStop, AMC, BlackBerry and Nokia continued to bounce around on Friday, they were less volatile than they had been during the midweek chaos. The top U.S. regulator weighed in, and tech platforms remained divided on how to respond to the frenzy. Here’s what you need to know about another weird day:

SEC shots fired: The U.S. Securities and Exchange Commission made its first official statement on the matter. While not naming any specific tickers, it said, “Extreme stock price volatility has the potential to expose investors to rapid and severe losses and undermine market confidence.” The SEC also gave what many interpreted as a warning to brokerages like Robinhood that restricted trading of hot securities: “We will act to protect retail investors when the facts demonstrate abusive or manipulative trading activity that is prohibited by the federal securities laws. Market participants should be careful to avoid such activity.”

Brokers concede—a little: Popular day-trading platform Robinhood lifted its ban today on buying GameStock and other securities it restricted yesterday, though traders are still limited on how much they can buy and sell. The company initially said it restricted trading to protect its users, but later revealed it lacked funding to cover trade clearances, raising more than US$1 billion from existing funders. Rival platforms, including Webull and M1, also resumed trading on Friday, following intense backlash from retail traders. Meanwhile, U.K.-based trading app Freetrade disabled U.S. stock purchases on Friday. The firm said the decision came from its foreign-exchange provider and their bank to restrict trading volume.

Robinhood’s internal turmoil: Some employees at the company, which has been the main target of retail traders’ ire, have spoken out about the firm’s decision to restrict trading. They argued the move compromised the company’s mission to “democratize finance” and empower small investors. “This sets a horrible precedent,” wrote one employee on discussion site Blind, as reported by The Information. 

“I didn’t expect this”: In an interview with The Wall Street Journal, the investor who kick started the frenzy, Keith Gill (also known as Roaring Kitty or DeepFuckingValue), said he wasn’t out to take on the Wall Street establishment when he began investing in GameStop back in June 2019. The stock was trading for about US$5 at the time; it closed the week at US$325. When markets opened Friday, the former marketing professional had about US$33 million in his E*Trade account.

Facebook wades in: Facebook temporarily removed Robinhood Stock Traders, a popular Wall Street discussion group with more than 157,000 members, for allegedly violating its community standards. The company said the move was unrelated to the stock run. The group’s creator, Allen Tran, said he received a notification saying it was removed for specifically violating policies on “adult sexual exploitation.” Tran told Reuters he’d never seen adult content on the page. Following the report, the group was reinstated.

Teachers’ cashes in: The Ontario Teachers’ Pension Plan sold 24.56 million shares in Macerich, after Reddit users pumped stock in the mall owner, which one Reddit user touted as “GameStop’s landlord.” The pension fund brought in nearly US$500 million from the sale. 

The inevitable crypto angle: Dogecoin, a cryptocurrency that started as a joke, saw its price jump 800 per cent by midday Friday. Like other hot stocks that rocketed past their fundamental values this week, the digital coin’s rise followed hype built up on a Reddit forum. 

A sour taste: Activist investor Andrew Left said Friday his firm Citron Research would stop publishing its popular short reports after its failed attempt to short GameStop contributed to this week’s trading craze. The firm said it will instead focus on “giving long-side multibagger opportunities for individual investors.” Citron has for years been trying to short Ottawa-based Shopify. CEO Tobi Lütke weighed in on the news, while also pledging a $200,000 donation to New York City’s Robin Hood charity.

Sponsored Content

The road to risk-smart regulation

By Deborah Aarts

Why cybersecurity needs to match pace with AI

By Jessica Aftimus Rosa

How to shift your workforce from AI experimentation to adoption

By Jessica Aftimus Rosa
Paid promotional content

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

Photo: Citron Research | YouTube

Most Popular This Week

News

RBC’s AI chief sounds the alarm over AI agents

By Chaimae Chouiekh
News

Underperforming AI agents at big banks face a very human pressure: Losing their jobs

By Claire Brownell
News

Brookfield’s new CEO flexes the firm’s soft power with its $50B Canadian bet

By Anita Balakrishnan
A shot taken through laboratory equipment of a researcher injecting liquid into a tube. The worker is wearing blue, latex gloves, and is a white lab coat with the VIDO logo on it.
News

Panel decries Canada’s chaotic way of funding world-class science

By David Reevely

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

A shot across an expanse of low forest of a rocket launching into blue skies.
News

Canada faces a satellite-launch crunch as SpaceX retires its workhorse rocket

By David Reevely

Briefing

Rio Tinto gets nearly $165M in additional federal funds for Quebec aluminum

By Anita Balakrishnan   |   Oct 23, 2026

U.S. to lift tariffs on some Canadian products crucial to Maine: Collins

By Joanna Smith   |   Oct 23, 2026

Carney warns of tech dependence after Starlink disruptions in Ukraine

By Catherine McIntyre   |   Oct 23, 2026

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

News

Brookfield’s new CEO flexes the firm’s soft power with its $50B Canadian bet

By Anita Balakrishnan   |   Oct 21, 2026
Commentary

Carmichael: Canada needs tax reform. Carney shouldn’t make it up as he goes along

By Kevin Carmichael   |   Oct 17, 2026
The Big Read

Beacon is building an AI empire by fixing Main Street’s software

By Murad Hemmadi   |   Oct 19, 2026
A man in glasses and a blue knit sweater outdoors on a city street, with brick buildings softly blurred behind him
News

A tech firm born from post-Brexit trade chaos sets its sights on Canada

By Joanna Smith   |   Oct 13, 2026
A shot of a freight truck passing beneath a gantry that bears signs directing traffic through the Port of Belfast.
News

RBC’s AI chief sounds the alarm over AI agents

By Chaimae Chouiekh   |   Oct 22, 2026
News

Anthropic revealed as client for EverWind’s $10B Nova Scotia data centre

By Catherine McIntyre   |   Oct 16, 2026

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account