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Could someone please confirm this, but as I understand they blocked buys but not sells, or the other way around? Instead of freezing the stock, it drives the pr
by pgt 6y ago
Could someone please confirm this, but as I understand they blocked buys but not sells, or the other way around? Instead of freezing the stock, it drives the price in one direction.
- IgorPartola 6y agoCorrect. They blocked buys which would drive the price down, benefitting Citadel, their main source of revenue. I don’t know if that’s why they did this but that’s what the lawsuit is for: to find out. At worst, Robinhood is going to close because of this and their and Citadel’s execs might face prison for manipulating the market.
- pgt 6y agoThanks for confirming! What happens if this kind of thing happens due to an unintentional bug? Do execs go to jail for market manipulation?
- lovecg 6y agoNot a lawyer, but I imagine it’s similar to how industrial accidents are treated. If there was proper due diligence and precautions, and it was truly an “act of God” sort of thing, that’s understandable. If on the other hand their processes are not up to snuff and they moved a bit too fast and broke one too many things, I imagine they wouldn’t be treated as nicely.