Investing.com -- GameStop Corp (NYSE:GME) was halted for volatile trading after tumbling 50% earlier on Tuesday.
The short squeeze in certain stocks appears to be unwinding. Shares of GameStop erased the worst of the decline but are still down around 39% at midday. AMC Entertainment Holdings Inc (NYSE:AMC) is down 33%, Express Inc (NYSE:EXPR) was down 32%, while BlackBerry Ltd (NYSE:BB) fell 18%. Meanwhile, the Dow Jones Industrial Average is up 600 points.
Last week, these stocks soared as retail traders using a Reddit forum and the mobile trading app Robinhood pitted themselves in a fight against hedge funds that had taken a negative view on the stocks by selling them short. Citron Research and Melvin Capital exited their short positions after being squeezed out.
Some other investors took advantage of the run-up in shares. Private equity firm Silver Lake converted a $600 million bond in AMC last week into shares of the movie theater operator, then sold the shares near their high of $19.90 on Wednesday.