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> but some scepticism is definitely warranted What’s the alternate explanation in which RH is being nefarious? Why would they want to stop buys?
by jrmg 6y ago
> but some scepticism is definitely warranted
What’s the alternate explanation in which RH is being nefarious? Why would they want to stop buys?
- hntrader 6y agoThe conspiracy theory is that they restricted trading in order to crash the GME price, thereby benefiting Citadel. There seems to be a "legal" way they could've done this, which is failing to be sufficiently capitalized for when the DTCC reqs change. Hanlon's Razor and all, I fully agree, so I think this isn't the most likely explanation, but I don't think the prior for it is that low either.
- franklampard 6y agoI wouldn’t dismiss that theory as conspiracy theory, given Steven cohen’s history of convictions.
- hntrader 6y agoTo be fair, that's not pertaining to Citadel (which RH sells flow to) but to Point72, a different backer of Melvin Capital
- totalZero 6y agoA bunch of rich people from whom Robinhood takes payment for order flow stood to lose money if shorts continued to squeeze quickly, and selling pressure from spooked longs provides an offer to shorts who need to cover.