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High-flying Reddit stocks whipsaw as platforms like Robinhood curb trading
- eschulz 6y ago"Stocks react predictably as Robinhood uses its platform to manipulate the market"
- vmchale 6y agoMelvin closed out of their position.
- jb775 6y agoOr transferred it to a complicit 3rd party so people would think they closed out their position.
- runawaybottle 6y agoIs it possible that there really is no rhyme or reason why stocks go up other than large amounts of money suddenly piling on over made up catalysts? It would be hilarious if we really let this system create all of our upper class and elites and took this long to see it exposed.
- flurben 6y agoI wouldn't call the catalysts made-up, necessarily
- jiofih 6y agoI don’t think that has ever been a secret, it’s exactly what it is.
- quandrum 6y agoThis is one reason to drive everyone's retirement into 401ks. The more stock that is held in 401ks, the easier it is for the hedge funds to manipulate stock prices with very few movements, because the majority of the stock is held long term without the holders knowing or being interested in the particular stock.
- Someone1234 6y agoI wonder if anyone shorted before trading was halted on multiple platforms? Because if there was, that's essentially using insider information/manipulation. The problem is that the SEC is a rotating door between these same firms, so have no reason to intervene.
- totalZero 6y agoI think we have to give the SEC a bit of time before passing judgment.
- Someone1234 6y agoI mean they had years after the 2007/08 crash, and nobody went to jail or even lost their license.
- totalZero 6y agohttps://www.sec.gov/spotlight/enf-actions-fc.shtml https://www.sec.gov/spotlight/enf-actions-fc.shtml
- Someone1234 6y agoRight, as I said. They essentially got away with it, even with most of their profits intact. A couple got a short suspension, but they're likely back at it today.
- totalZero 6y agoWell, no, here's what you said: > the SEC is a rotating door between these same firms, so have no reason to intervene. The SEC can intervene, and does intervene. I don't know why you're talking about jail. The SEC doesn't throw people in jail. It doesn't even have the ability to file criminal charges by itself; prosecutors like the US Attorney for the Southern District of New York do that. And they have. Besides, I don't think this situation is similar to the financial crisis for several reasons. Not the same actors, not the same markets, not the same securities...
- damm 6y agoSo it's okay for billionaires to short GME but when people on reddit come together it's a problem? I hope wallstreetbets crashes the market and makes everyone on the NYE cry like a baby. The unfortunate reality is that will never happen; they will just all up Biden and he'll cut them a check.
- LegitShady 6y agoI see it more like RH knowing this thing is probably going to tumble really hard and many of their customers might be holding part of the bag (with borrowed RH money) when it does implode, so they're limiting further exposure.
- zionic 6y ago"Curb Trading" is certainly a creative way to say "locked buy orders but allowed sells so that their largest partner loses less money" If the SEC does nothing about this its time to reevaluate the existence of the SEC in its current form.
- sebmellen 6y agoJustin Kan (Twitch founder) is calling for Ken Griffin and Robinhood's co-founders to jailed. > Just got a tip that Citadel reloaded their shorts before they told Robinhood to stop trading $GME. > If this is true, Ken Griffin and the Robinhood founders should be in jail. > This is class warfare. See https://twitter.com/justinkan/status/1354856228661334017 https://twitter.com/justinkan/status/1354856228661334017.
- jb775 6y agoIt's time to immediately evaluate many systems in their current form.
- LittlePeter 6y agoin fact, I'd like a cronjob for that. we can't be reviewing only after something major happens.
- jiofih 6y agoIf they allow selling, who is buying? This is clear market manipulation.
- croes 6y agoHedge funds
- circumvent123 6y ago...it was halted on a few platforms, but there are many brokerages where buying was not halted.
- nawgz 6y agoThat seems less-and-less true as time goes on. Many brokers are not allowing users to buy GME even if their UX implies you can.
- ordinaryradical 6y agoThat's why I think it's pretty blatant that this is an attempt to artificially deflate the price. Shorts can keep re-leveraging themselves and driving the price down because you've tied the hands of the demand. Absurd.
- dang 6y agohttps://news.ycombinator.com/item?id=25941431 https://news.ycombinator.com/item?id=25941431
- hn_asker 6y ago> The best-performing stocks this week are brands familiar to anyone who used to hang out in malls as a kid in the mid-2000s. Ah nostalgia for Spencers, KB Toys, Toys R Us, Hot Topic...
- rammy1234 6y agoTrading algos have been fine tuned a certain way. Now suddenly some group changes the conventions and rules of investing, is confusing the system. This is not going well with many investors and funds.
- Sleepytime 6y agoRobinhood is now reportedly force-selling GME, though I've seen nothing but screenshots to confirm.