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The responses in this thread are frankly disturbing. People are accusing Robinhood of manipulating the market on behalf of short funds, when WSB had literally
by maxbond 6y ago
The responses in this thread are frankly disturbing.
People are accusing Robinhood of manipulating the market on behalf of short funds, when WSB had literally been systematically stopping these funds out. Pot and kettle much?
People don't seem to understand what is protective about these actions. They aren't stopping anyone from closing positions - just from opening or adding to positions in the middle of a speculative mania. However you feel about that, it's exactly what retail brokers do, and always has been. Do you really think people buying into AMC right now are anything other than bag holders? The company is teetering on bankruptcy. The stock will quite possibly be worth $0 in the next year or so. Why should Robinhood let people blow up their accounts? How would the SEC and CFTC look upon that?
People are saying this is unacceptable and that they're going to move to a different broker. What broker? Virtually all of the retail brokers did this today.
I think Robinhood is a terrible broker that encourages overtrading and frames markets as being almost purely about price action, and if you want to close your account there and move to a better broker then I think that's great. But the reasons being given here are disconnected with reality.
- castlecrasher2 6y ago>However you feel about that, it's exactly what retail brokers do, and always has been. Please, elaborate on the last time a broker or brokers did this when the stock was >140% shorted, let alone any other time they stopped retail investors from losing money on an overpriced stock. This stinks of market manipulation, and you're a fool if you think it's for retail investor protection.
- dang 6y agoPlease don't cross into personal attack in HN comments, no matter how wrong you think someone is or how strongly you feel. It just makes everything worse. https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html