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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
by 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 agoYou 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 agoRH are scummy but reloading just beforehand seems way too risky by citadel and more like a made-up for attention story.
- hntrader 6y agoIt 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 agoHm, 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 agoRH 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.