Yes, a margin requirement increase means that a broker or regulatory body has raised the minimum amount of equity that an investor must maintain in their margin account.

So if regulators hate the run -> they raise margin requirements to signal the plebs to chill -> plebs get the memo and chill.

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I believe this was exactly the move they used against Robinhood in 2021, to force them to hold buy trades of GameStock, which subsequently ended the parabolic run of GME.