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Citadel is RobinHood’s biggest customer - they pay RH for order flow from “unsophisticated” investors. Citadel also owns a non-controlling interest in Melvin c
by alasdair_ 6y ago
Citadel is RobinHood’s biggest customer - they pay RH for order flow from “unsophisticated” investors.
Citadel also owns a non-controlling interest in Melvin capital, a hedge fund that is/was massively short GME. Citadel gave them $2.7 billion earlier this week.
It seems very likely that Citadel pressured RobinHood to stop all purchases so that Citadel’s investment is secure.
There are additional rumors that Citadel went short GME right before the brokers stopped allowing people to buy, only allowing them to sell.