Texas and New York are investigating the trading platforms where many of GameStop’s investors are buying their shares.
The states are demanding records on user restrictions from the trading app, Robinhood, and several online brokerages.
Those companies blocked users on Thursday from trading GameStop and several other retail securities.
"The US economy should be transparent, open," tweeted Texas Attorney General Ken Paxton on Friday. "This week’s coordinated corruption by a cabal of oligarchs shows it isn’t."
The frenzy over buying those stocks is aimed at taking down elite hedge funds that profit when a stock price falls.
Some of Robinhood's critics accused it of trying to protect its own wealthy capital investors.
The buying frenzy with GameStop continued again on Friday and the stock market did not take it well.
The major indexes saw big selloffs, with some of that involving firms that now have to cover their losses after betting that Gamestop shares would fall. Other investors are concerned about a ripple effect with other inflated retail stocks.
There was also other pressure on the market Friday as investors were not impressed with the Johnson and Johnson vaccine.
The Dow closed below 30,000 and the S&P 500 finished its worst week in three months.