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I can accept that they ran out of cash. It's just like a company running out of servers when traffic spiked. On the other hand, moralizing their decision and ci
by g9yuayon 6y ago
I can accept that they ran out of cash. It's just like a company running out of servers when traffic spiked. On the other hand, moralizing their decision and citing misinformation and user-caring erodes trust.
- fny 6y agoI can't. They all saw this coming from at least two days before, and they managed to fix this problem with a trading session. Rather than freeze the entire market on GME so no one could buy or sell, institutional traders were free to buy out of their positions while retail accounts were being liquidated in a coordinated fashion across all brokerages. It's very clear to me that insiders saw the how much hurt this short squeeze would bring the financial markets, and they all coordinated to relieve it. It's no coincidence so many hedge funds started degrossing, futures were down, and the VIX spiked to the moon exactly as $GME's price started accelerating... ...once brokerages bricked buying the VIX collapsed and markets rose. Infinity squeeze averted and all's well in Wall Street. No big institution is likely at risk anymore and retail traders along with smaller funds will be the bagholders.
- deleted 6y ago[deleted]
- malandrew 6y ago> It's very clear to me that insiders saw the how much hurt this short squeeze would bring the financial markets Maybe. But if this is a trolly car problem it's clear they made the call to let the train run down the track with the retail investor when it should have been the track that eviscerated Citron and Melvin and all their backers. Big institutions that made the bad trades should have been the bagholders.
- bogidon 6y agoHmmm. How many companies claim to put users first? And of those how many actually do? Oh right. I would not put a fintech in charge of said trolley.
- amluto 6y agoWho is “they”? Unless I’m very much mistaken, Robinhood has no institutional clients. The institutional clients as well as the more serious retail clients were unaffected. It would be quite odd to halt trading on a stock market-wide because a small number of brokers run out of collateral.
- themihai 6y agoStop being "less smart". Robinhood's clients are/is a hedge fund manager, Citadel Securities - Robinhood’s largest customer, which tried to bail out Melvin Capital which got bankrupted in the short squeeze on GME. Unless you've lived under a rock you should know by now how Robinhood is making the money.
- paulie_a 6y agoHopefully wsb goes to war against citadel next
- adrr 6y agoUnless you’re paying for trades you’re routed to someone buying order flow. E*TRADE, Ameritrade, etc sell order flow for revenue. IB charges for orders and doesn’t sell order flow but also cut off GME. What’s the theory around that broker?
- platz 6y agoI could buy GME through ETrade but IB wouldn't allow a buy with cash. The chairman said something about market health but the reason he gave was about margin without using that word.
- themihai 6y agoWhen you put some billionaire guys, some of them happen to be have multiple roles such market makers, brokers, hedge funds that short GME and even the investors in the brokerage platform where GME is traded on one side and some poor retailers on the side side you don't need a big brain to figure out who wins. Maybe you are not aware but Melvin lost almost 3 billions and was bailed out by Citadel and Point72 and probably they will loose even more and go bankrupt if they don't stop people buying GME. Do you think these guys want to leave all that cash on the table and play fair? If you look at Point72 owner(Cohen) you see some really "interesting" things.
- taigeair 6y agoDon't quite understand the bricked buying part. Can you explain?
- deleted 6y ago[deleted]