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Yeah it must be, they gave funds to Melvin Capital which took a beating on GME, and make money off Robinhood's customer flow.
by hntrader 6y ago
Yeah it must be, they gave funds to Melvin Capital which took a beating on GME, and make money off Robinhood's customer flow.
- tomjakubowski 6y agoCitadel the hedge fund and Citadel the market maker are separate companies.
- tylerhou 6y agoThey do share ownership though. But the alleged conspiracy above is unlikely for other reasons.
- whimsicalism 6y agoGiving funds to Melvin so they can close their short != having a short position in GME There are like 30 comments getting this confused in this thread.
- briankelly 6y agoThis sounds a little pedantic to me. Citadel has exposure to a short position in GME due to their deal.
- whimsicalism 6y ago> Citadel has exposure to a short position in GME due to their deal No, they don't. It's not pedantic - Citadel literally does not have a short position or exposure to a short position in GME.
- briankelly 6y agoIf you lend money to someone, especially someone on the brink of insolvency, then you are buying whatever they are. Of course, Citadel can be on both or any number sides but they still take on exposure in that direction.
- whimsicalism 6y agoYou're missing that they lent the money specifically so they were no longer exposed to the short position.
- briankelly 6y agoYeah this is the central argument and I don't think we have a clear answer yet.