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I'm guessing the Robinhood "infinite money cheat" had a big impact here. Even if only a few thousand people built up crazily leveraged positions it could cause
by derision 7y ago
I'm guessing the Robinhood "infinite money cheat" had a big impact here. Even if only a few thousand people built up crazily leveraged positions it could cause a tumble like this. The pattern makes sense to me, robinhood recalculates margin every night and liquidates in the morning, and the big drops have all been first thing in the morning pre-market.
- bontaq 7y agoYou realize that's due to shorts, puts, and more bad news right? It's not mysterious at all.
- derision 7y agoI had no idea!! Thanks man you really opened my eyes /s
- bontaq 7y agoYou literally implied robinhood was somehow swinging the dow jones down 7% at open due to an "infinite money" cheat. Maybe just accept new information and correct your weird conspiracy theory.
- derision 7y agoThe infinite money cheat was leveraged by selling both calls and puts and underlying stock. Forced liquidation would trigger massive selling to unwind these positions
- bontaq 7y agohttps://markets.businessinsider.com/news/stocks/robinhood-fixes-infinite-leverage-free-money-glitch-suspends-related-traders-2019-11-1028670689 https://markets.businessinsider.com/news/stocks/robinhood-fi... man.