Meme Coins Are Squeezing Tokenized Stocks on Robinhood Chain
A meme coin called BONER cornered nearly 53% of tokenized Hims & Hers Health shares on Robinhood Chain over the August 30 weekend, briefly sending the wrapped stock to $132.64 against a real Friday close of $28.84.
The actual HIMS shares barely moved, trading near $29 on Monday, but this pattern has spread across Robinhood Chain, where meme coin-stock pairs generated $217 million in trading volume on September 2.
These tokens work by allowing traders to buy a meme coin and locking up tokenized stocks inside its liquidity pool. This setup is reminiscent of the GameStop saga from 2021, where Reddit's WallStreetBets forum coordinated a short squeeze that forced hedge funds to cover at a massive loss.
The goal is often a short squeeze, but the math doesn't always work out in favor of the meme coin traders. BONER's own website admits that every tokenized HIMS share combined equals just 0.1% of that short position.