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I have seen some information floating around stating that RH is not responsible for the trade clearing in the RH platform. Robinhood has in effect cleared all

I have seen some information floating around stating that RH is not responsible for the trade clearing in the RH platform. Robinhood has in effect cleared all its trades since 2018 as you can see based on their own page. https://robinhood.com/us/en/support/articles/common-tax-questions/ https://robinhood.com/us/en/support/articles/common-tax-ques...

silexia 6y ago
Even outside of the trade clearing argument (even if Robinhood clears it's own trades, it could still lose huge sums if the stock gapped), a short squeeze is illegal. Allowing it's platform to be used for illegal activity could make them liable to the SEC and investor lawsuits.
- zionic 6y ago
  > a short squeeze is illegal No it's not
- llampx 6y ago
  Short squeezes are not illegal, stop spreading misinformation.
- Noted 6y ago
  You keep posting this, but do you have any evidence? Other people have repeatedly refuted short squeezes being illegal.
- girvo 6y ago
  You keep posting this in every possible thread. Question: who got punished for the VW short squeeze? That was illegal too, right? The thing is, I think I know what you’re trying to say, but you’re not explaining it well enough, and are spreading (at best) misinformation. A short squeeze isn’t illegal. Organising a coordinated one might be.
  - drail99 6y ago
    The VW wasn't a planned squeeze. It just happened because Porsche was actively taking a stake in the company. Porsche didn't buy the stock with the intention of selling it to make a profit, they literally tried to buy the company to trigger a asset transfer clause. It's also worth nothing that this happened in Germany so not subject to SEC regulations AND very importantly, Porsche actually ended up on the losing end of the deal and getting screwed. They tried to get a Bail out from the Saudi's but German govt. Wouldn't allow it. In the US, buying stocks with the intention of creating a short squeeze and then reselling the stock is expressively illegal by SEC regulations, it's why you see the phrase "WE like the stock" so much.
rohitb91 6y ago
Okay, sure, so then block the entire stock for a while. What they did was block one side. They blocked people from buying but only allowed selling. Imagine all the market sells after that tanking the price.
- cmdli 6y ago
  In fairness, you can close out your positions if you are long or short. If you are shorting the stock, you are allowed to buy to close the position.
  - renewiltord 6y ago
    Right, I went long by buying to close my short leg on spreads, holding the long leg.

silexia 6y ago

Even outside of the trade clearing argument (even if Robinhood clears it's own trades, it could still lose huge sums if the stock gapped), a short squeeze is illegal. Allowing it's platform to be used for illegal activity could make them liable to the SEC and investor lawsuits.

zionic 6y ago
> a short squeeze is illegal No it's not
llampx 6y ago
Short squeezes are not illegal, stop spreading misinformation.
Noted 6y ago
You keep posting this, but do you have any evidence? Other people have repeatedly refuted short squeezes being illegal.
girvo 6y ago
You keep posting this in every possible thread. Question: who got punished for the VW short squeeze? That was illegal too, right? The thing is, I think I know what you’re trying to say, but you’re not explaining it well enough, and are spreading (at best) misinformation. A short squeeze isn’t illegal. Organising a coordinated one might be.
- drail99 6y ago
  The VW wasn't a planned squeeze. It just happened because Porsche was actively taking a stake in the company. Porsche didn't buy the stock with the intention of selling it to make a profit, they literally tried to buy the company to trigger a asset transfer clause. It's also worth nothing that this happened in Germany so not subject to SEC regulations AND very importantly, Porsche actually ended up on the losing end of the deal and getting screwed. They tried to get a Bail out from the Saudi's but German govt. Wouldn't allow it. In the US, buying stocks with the intention of creating a short squeeze and then reselling the stock is expressively illegal by SEC regulations, it's why you see the phrase "WE like the stock" so much.

rohitb91 6y ago

Okay, sure, so then block the entire stock for a while. What they did was block one side. They blocked people from buying but only allowed selling. Imagine all the market sells after that tanking the price.

cmdli 6y ago
In fairness, you can close out your positions if you are long or short. If you are shorting the stock, you are allowed to buy to close the position.
- renewiltord 6y ago
  Right, I went long by buying to close my short leg on spreads, holding the long leg.