Shares of esports company FaZe Holdings (NASDAQ: FAZE) got hammered on Thursday after it filed an amended registration document with the Securities and Exchange Commission (SEC). The stock is a favorite for traders, and small news items can drastically move the stock, as we're seeing today. As of 12:50 p.m. ET, FaZe stock was down a whopping 22%

In August, FaZe filed an S-1 -- the document all companies file when going public -- in relation to its merger with a special purpose acquisition company (SPAC). Today, FaZe filed an amended S-1 with the SEC, its fourth amendment this month. The filing states that it neglected to include Exhibit 5.1 in its last filing, which is the legal opinion letter from its law firm. 

Without this document, FaZe's stock offering can't be considered "effective." And if it's not been declared effective by the SEC, then insiders can't sell their shares. 

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Source Fool.com