The meme stock sector, including GameStop (GME), has experienced a significant sell-off, with GameStop's losses reaching around 60%. This decline is driven by broader market risk aversion and the abrupt exit of retail investor Ryan Cohen from Bed Bath & Beyond, which also plummeted. These stocks, known for their volatility and retail investor-driven prices, faced increased selling pressure as platforms like Robinhood eased trading restrictions, leading to profit-taking and further declines.