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During today's short ladder immediately after Robinhood removed the ability to buy shares... • There was 443k shares sold in a single batch at $120 at 11:24:36

During today's short ladder immediately after Robinhood removed the ability to buy shares... • There was 443k shares sold in a single batch at $120 at 11:24:36 AM EST. • There was 347k shares sold in a single batch at $140 at 11:19:09 AM EST. Someone took a total loss of $300M from the price an hour prior OR that is a $100M short sale.

hntrader 6y ago
Most likely it's a large long position who is capitulating or being margin called (stopped out) by their broker. I don't think a short seller with that kind of capital would ever chase a steep drop like that.
- JackTally 6y ago
  You are probably right! Justin Kan (YC) just posted this: https://twitter.com/justinkan/status/1354861575916515330?s=20 https://twitter.com/justinkan/status/1354861575916515330?s=2...
  - Tenoke 6y ago
    RH are scummy but reloading just beforehand seems way too risky by citadel and more like a made-up for attention story.
    - hntrader 6y ago
      It could've been one of the many trading desks inside Citadel who saw the news early, through publicly available sources (e.g. the RH website), and put on a short position within a few seconds. So the story about Citadel shorting the top could be be simultaneously true and legal/normal. Definitely needs an investigation though.
      - Tenoke 6y ago
        Hm, actually Citadel has access to all RH trades before they go in effect as part of their partnership so I guess their traders would know when buys stop coming at the earliest possible time without any breaking of the firewall. Still, if that's what happened the tweet is still inaccurate and likely made-up for attention
    - JackTally 6y ago
      RH goes down. Minutes later there is a ladder driving the price down $100s. Minutes later someone longs $100M position. Take it how you see it. And agree about the risk.
dang 6y ago
(This comment was originally a reply to "Robinhood makes most of its money selling customer orders (2020)" https://news.ycombinator.com/item?id=25946626 https://news.ycombinator.com/item?id=25946626, but we've merged it into the main thread.)

hntrader 6y ago

Most likely it's a large long position who is capitulating or being margin called (stopped out) by their broker. I don't think a short seller with that kind of capital would ever chase a steep drop like that.

JackTally 6y ago
You are probably right! Justin Kan (YC) just posted this: https://twitter.com/justinkan/status/1354861575916515330?s=20 https://twitter.com/justinkan/status/1354861575916515330?s=2...
- Tenoke 6y ago
  RH are scummy but reloading just beforehand seems way too risky by citadel and more like a made-up for attention story.
  - hntrader 6y ago
    It could've been one of the many trading desks inside Citadel who saw the news early, through publicly available sources (e.g. the RH website), and put on a short position within a few seconds. So the story about Citadel shorting the top could be be simultaneously true and legal/normal. Definitely needs an investigation though.
    - Tenoke 6y ago
      Hm, actually Citadel has access to all RH trades before they go in effect as part of their partnership so I guess their traders would know when buys stop coming at the earliest possible time without any breaking of the firewall. Still, if that's what happened the tweet is still inaccurate and likely made-up for attention
  - JackTally 6y ago
    RH goes down. Minutes later there is a ladder driving the price down $100s. Minutes later someone longs $100M position. Take it how you see it. And agree about the risk.

dang 6y ago

(This comment was originally a reply to "Robinhood makes most of its money selling customer orders (2020)" https://news.ycombinator.com/item?id=25946626 https://news.ycombinator.com/item?id=25946626, but we've merged it into the main thread.)