Related video above: Reddit Is Now Valued At More Than $10 Billion

After days of controversy over its decision not to crack down on misinformation about COVID-19, Reddit is somewhat backtracking, taking action against dozens of its groups known as "subreddits."

The social media site on Wednesday banned one prominent subreddit called r/NoNewNormal, which described itself as hosting a "[skeptical] discussion of the 'new normal' that has manifested as an outcome of the coronavirus (COVID-19) pandemic" and has been flagged by several prominent subreddits as a significant source of COVID-19 and vaccine misinformation.

According to a post by Reddit's security team, however, r/NoNewNormal was banned not specifically for sharing misinformation but for breaking the platform's rules against "brigading," a practice that refers to "targeted interference" or harassment of other communities.

"We found very clear signals indicating that r/NoNewNormal was the source of around 80 brigades in the last 30 days (largely directed at communities with more mainstream views on COVID or location-based communities that have been discussing COVID restrictions)," the post said.

And while r/NoNewNormal was the only subreddit banned outright, Reddit also said it had placed 54 other subreddits under "quarantine" — a term the platform uses for communities it places behind a warning and removes from search and recommendations. The most common reason for communities to be quarantined, according to Reddit's page on the policy, is if they host "highly offensive or upsetting" content or are "dedicated to promoting hoaxes ... that warrant additional scrutiny."

Wednesday's action comes a week after Reddit co-founder and CEO Steve Huffman rebuffed calls from a pro-vaccine group called r/vaxxhappened to do more to clamp down on COVID-19 misinformation. In a post on the site's announcements page last Wednesday, Huffman used a well-worn argument by Silicon Valley social networks: that Reddit is simply a forum for "open and authentic discussion and debate."

"Given the rapid state of change, we believe it is best to enable communities to engage in debate and dissent, and for us to link to the CDC wherever appropriate," Huffman wrote, referring to the Centers for Disease Control and Prevention. "While we believe the CDC is the best and most up to date source of information regarding COVID-19, disagreeing with them is not against our policies," he added.

Following Huffman's response, r/vaxxhappened and dozens of other subreddits — many with millions of members — restricted their pages or went private to protest COVID-19 misinformation.

Reddit is by no means alone when it comes enabling the spread of misinformation, propaganda and hate speech, though its approach to content moderation — relying mostly on volunteers within individual communities — is far more decentralized than Twitter or Facebook. Both those platforms have sought to be more proactive in fighting COVID misinformation, with Facebook recently banning the so-called "disinformation dozen" accounts after pressure from the White House. Twitter has suspended accounts such as that of Rep. Marjorie Taylor Greene for sharing misinformation about the virus and has made it easier for users to report tweets they think are false. But both platforms continue to face criticism for not going far enough to combat misinformation.

Although Reddit has made greater efforts to curb hate speech and rein in trolls, the pro-vaccine moderators said the site hasn't done enough to stop COVID-19 lies from spreading through "sheer volume of repetition."

In its post on Wednesday, Reddit's security team shared an analysis of COVID-related content posted on the site since January 2020, which found "a sizable increase" since July this year as the delta variant spread across the United States. The amount of COVID-related content reported to Reddit by users also quintupled in the past month compared to a year ago.

"We can infer that there has been an increase in COVID denial content on the platform, and that increase has been more pronounced since July," the team said, adding that it is investigating other subreddits beyond r/NoNewNormal.

"We never claim to be perfect at these things but our goal is to constantly evolve," it added.

Video: Jim Cramer says wallstreetbets, Reddit has altered market psychology

The meteoric rise in GameStop's stock, as traders congregating on Reddit and Discord take on short sellers and hedge funds, is hard to look away from. It's the closest thing Wall Street has to David vs. Goliath.

An army of smaller-pocketed, optimistic investors threw dollars and buy orders at the stock of GameStop — in direct opposition to a group of wealthy investors who are counting on the stock price to plunge.

What's happening: Shares of GameStop, a legacy company whose stores are often located in struggling malls, have soared dramatically over the past two sessions as day traders push the stock with growing fervor.

Investors have been betting that GameStop's stock will fall. They “shorted” the stock, essentially thinking shares would tank. But such bets have been disastrous recently.

Meanwhile, a cavalcade of smaller investors has been exhorting each other on the internet to keep the stock's momentum flying toward the moon. Many are pitching it as a battle of regular people versus hedge funds and big Wall Street firms.

The stock, which closed out 2020 at $18.84 per share, finished the day at $76.79 after trading was halted multiple times due to volatility. At one point, it climbed to nearly $160, a record high.

You read that correctly. GameStop, which is expected to lose money this year and next, has more than quadrupled in value in under a month because it's effectively become a meme stock. Since the beginning of 2020, it's jumped more than 1,100%, outpacing even Tesla's gains. Shares are up another 20% in premarket trading.

Investors on social media had been arguing that GameStop was seriously undervalued and cheered earlier this month when the company added Chewy founder Ryan Cohen, who has been pushing a digital overhaul, to its board. Now, the focus is on momentum, as small investors hope the hype can help the stock keep rising.

It's evident, however, that the saga has grown into much more than an argument over the future of a video game retailer, or the merits of different trading approaches. As no-fee apps like Robinhood democratize access to financial markets, some are reading it as a generational fight between the old and new guard of the investing world.

Users on Reddit cheered when veteran short seller Citron Research said it would stop commenting on the stock, citing harassment from GameStop's backers. Melvin Capital Management, which bet against GameStop's rise, has had to accept an infusion of cash after suffering steep losses, the Wall Street Journal reports.

"As someone who started trading stocks in the late '90s in college, I would always remember watching when the small retail trading groups would get crushed by hedge funds and savvy short-sellers," Oanda analyst Edward Moya said in a note to clients this week. "What happened with GameStop's stock is a reminder of how times are changing."

David certainly now has Goliath's attention.

"Starts opening r/WSB with my usual morning tabs," market strategist Michael Antonelli of R.W. Baird tweeted Monday, referring to the Reddit message board where much of the GameStop action has been coordinated.

Traders on such platforms have been plugging other stocks with major results, too. BlackBerry shares, another fan favorite, are up more than 170% in 2021. They jumped 28% on Monday alone.

Big picture: The wisdom of such trading decisions is certainly debatable. After all, it's near impossible to argue that GameStop's value has actually increased exponentially in a matter of weeks. Some gains are also attributable to a so-called "short squeeze," as those who bet against the stock rush to buy in so they can cover some of their losses.

But once the GameStop dust settles, expect Wall Street's asset managers to watch where the retail trading hive mind wanders next. Clearly, it can have an impact.

The Associated Press contributed.

Trading platform Robinhood lifted restrictions on trading shares of GameStop Corp. and AMC Entertainment Inc. late Thursday.“There are currently no temporary limits to increasing your positions,” Robinhood said on its website Thursday night.The news comes following a roller-coaster period last week. Highly volatile trading of GameStop and other stocks erupted when amateur traders, many gathering on the Reddit forum r/wallstreetbets, took advantage of the heavy short selling on underdog stocks like GameStop, and invested heftily, spoiling short-seller's positions.Robinhood users became irate at the service, some even bringing lawsuits, when the trading platform restricted trading of 50 highly volatile stocks that were majorly shorted. Robinhood eased up on the restrictions Sunday, bringing that number down to eight. Still, GameStop and AMC remained on their list. The relaxing of restrictions comes as GameStop, AMC and other stock, once propped up by the hype of mass-investment, seem to be coming down.GameStop had a 500-share purchase limit earlier Thursday, and AMC had a 5,500-share limit.