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Robinhood has had a tough week after it restricted trading in GameStop (NASDAQ: GME) amid high volatile times. The online brokerage restricted trading in GME, AMC & other soaring stocks, and traders were furious in return. However, after GameStop plunged 40% on Tuesday, Robinhood eased trading in the stock again.

Robinhood — famous for $0 commission trades and a combination of free shares, caught the attention of both amateur and professional traders. Consequently, the company gained success quickly and is aiming to go public in 2021. However, the company might be ahead of hard times.

On Tuesday, Robinhood allowed traders to buy up to 100 shares of GameStop again. The company had a limit of 20 stocks last week when the stock was leading a 1,500% increase. Nevertheless, Redditers described the move as “too late”. GME price lost 73%, and the short-squeeze effect faded — making investing in the stock less profitable.

Moreover, Robinhood allowed trading in the previously restricted stocks. Clients are now allowed to buy up to 1,250 shares of AMC Entertainment. Shares of AMC dropped 41% on Tuesday. Additionally, the limit of Express shares is now 3,000 and 12,000 shares for Naked Brand Group.

As of this writing, Robinhood secured $3 billion in funding. The company claims that they will use the money to fund trading.

Robinhood denied favoring hedge funds

Meanwhile, Robinhood replied in an email it sent to its customers on Monday: "We had to take steps to limit buying in those volatile stocks to ensure we could comfortably meet our deposit obligations. We didn’t want to stop people from buying stocks and we certainly weren’t trying to help hedge funds."

However, Robinhood has put itself in a very tough situation. The company might be facing charges from The Securities and Exchange Commission, and traders are leaving the platform. Even worse, thousands of the platform’s users filed lawsuits against the company.

Furthermore, users of Robinhood launched a second 1-star rating campaign on both Google Play Store and Apple’s App Store. Angry traders alleged Robinhood of disadvantaging them in favor of hedge funds.

Richest men in the world and CEO of Tesla (NASDAQ: TSLA) Elon Musk chatted with Robinhood’s CEO Vladimir Tenev regarding the restrictions imposed on the GME stock. Musk asked Tenev whether the restrictions are in favor of hedge funds. Additionally, Musk described Robinhood’s actions as “shady”.

Traders launch a second 1-star rating campaign

Last week, traders launched a one-star campaign on Google Play Store and Apple Store. Robinhood’s rating went from four stars to one star out of five in 2 days period. However, Google removed the negative reviews.