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I'm not entirely buying this T+2 narrative. It does not explain why Discord [1] and Facebook [2] were censoring WSB last week. [1]: https://www.theverge.com/20

I'm not entirely buying this T+2 narrative. It does not explain why Discord [1] and Facebook [2] were censoring WSB last week. [1]: https://www.theverge.com/2021/1/27/22253251/discord-bans-the-r-wallstreetbets-server https://www.theverge.com/2021/1/27/22253251/discord-bans-the... [2]: https://www.newsweek.com/facebook-robinhood-stock-traders-group-removed-wallstreetbets-gamestop-1565302 https://www.newsweek.com/facebook-robinhood-stock-traders-gr...

swampthing 6y ago
Does there have to be one single explanation for 3 separate events?
- bobthebuilders 6y ago
  Occam's razor. The fact that someone said take down WSB is way simpler than any alternative.
  - dbt00 6y ago
    "Someone" said it and all these people listened? You're going to need more evidence than that.
  - swampthing 6y ago
    Certainly, writing that is simpler than writing out the reasons behind 3 separate events. But I think Occam’s razor is more about actual simplicity, and would cut against arguing that there was an elaborate conspiracy that involves multiple large companies acting against their own interests.
  - jcranmer 6y ago
    Except you're missing the explanation as to why all of the actors have a reason to listen to that person. That's where things stop being simple.
  - duxup 6y ago
    I'm not sure that's more simple than different groups taking different actions for their own reasons.
  - sixstringtheory 6y ago
    "Simpler" is subjective and sort of beside the point of Occam's razor. The razor is about choosing the competing hypothesis with the fewest assumptions baked in. "When you hear hoofbeats, think of horses, not zebras." A massively orchestrated conspiracy requires a lot of assumptions and so probably violates the razor.
- srcreigh 6y ago
  Nope. I'm curious about the clearinghouses (DTCC). Robinhood explains the general process in a post from 4 days ago [1]. It would be great to see more details for the DTCC's increase in the amount of required collateral. I tried Googling for some info but didn't find much (probably haven't tried hard enough yet) ex [2]. Naively, what we saw was a failure of the financial system to support trades. It may not be Robinhood, but it may not necessarily be T+2 either. Is there a website I can use to query the current deposit requirements for GME? Is it public info? Are there details provided for factors affecting that amount that can be compared across different stocks? I'm a total noob please forgive my noob curiosities :) [1]: https://blog.robinhood.com/news/2021/1/29/what-happened-this-week https://blog.robinhood.com/news/2021/1/29/what-happened-this... [2]: https://dtcclearning.com/products-and-services/settlement/settlement-services/risk-management/297-participants-fund/2181-how-your-participants-fund-deposit-is-calculated.html https://dtcclearning.com/products-and-services/settlement/se...
sjburt 6y ago
I think because both the discord server and the facebook pages were cesspools of sexist/racist content, that during the GME frenzy they got even worse, and the services knew that they would face increased media scrutiny with all of the increased attention. The hit pieces practically write themselves.
dbt00 6y ago
Social media companies often check for things that are against the TOS when a media storm is brewing, this is not new. They're trying to stay ahead of negative press.
- bitcharmer 6y ago
  Yes and no, by banning WSB social media created negative press too. There's an implication: "if they got banned then there must be something wrong with them; probably racist or nazis".
duxup 6y ago
Robinhood's actions could be independent of whatever happened with Facebook and Discord.
_trampeltier 6y ago
I also don't think it's the 100% truth. First, I don't understand why you couldn't buy just some stocks. If RH really had not enough money, you couldn't buy any stock. Second, when you buy stocks on RH or any other exchange, you have to have the money on there on the account. So the money is there. There is no risk on the long side at all. Third, RH was not the only one, suddenly several exchanges have the same problem at the same time .. no I don't think so.

swampthing 6y ago

Does there have to be one single explanation for 3 separate events?

bobthebuilders 6y ago
Occam's razor. The fact that someone said take down WSB is way simpler than any alternative.
- dbt00 6y ago
  "Someone" said it and all these people listened? You're going to need more evidence than that.
- swampthing 6y ago
  Certainly, writing that is simpler than writing out the reasons behind 3 separate events. But I think Occam’s razor is more about actual simplicity, and would cut against arguing that there was an elaborate conspiracy that involves multiple large companies acting against their own interests.
- jcranmer 6y ago
  Except you're missing the explanation as to why all of the actors have a reason to listen to that person. That's where things stop being simple.
- duxup 6y ago
  I'm not sure that's more simple than different groups taking different actions for their own reasons.
- sixstringtheory 6y ago
  "Simpler" is subjective and sort of beside the point of Occam's razor. The razor is about choosing the competing hypothesis with the fewest assumptions baked in. "When you hear hoofbeats, think of horses, not zebras." A massively orchestrated conspiracy requires a lot of assumptions and so probably violates the razor.
srcreigh 6y ago
Nope. I'm curious about the clearinghouses (DTCC). Robinhood explains the general process in a post from 4 days ago [1]. It would be great to see more details for the DTCC's increase in the amount of required collateral. I tried Googling for some info but didn't find much (probably haven't tried hard enough yet) ex [2]. Naively, what we saw was a failure of the financial system to support trades. It may not be Robinhood, but it may not necessarily be T+2 either. Is there a website I can use to query the current deposit requirements for GME? Is it public info? Are there details provided for factors affecting that amount that can be compared across different stocks? I'm a total noob please forgive my noob curiosities :) [1]: https://blog.robinhood.com/news/2021/1/29/what-happened-this-week https://blog.robinhood.com/news/2021/1/29/what-happened-this... [2]: https://dtcclearning.com/products-and-services/settlement/settlement-services/risk-management/297-participants-fund/2181-how-your-participants-fund-deposit-is-calculated.html https://dtcclearning.com/products-and-services/settlement/se...

sjburt 6y ago

I think because both the discord server and the facebook pages were cesspools of sexist/racist content, that during the GME frenzy they got even worse, and the services knew that they would face increased media scrutiny with all of the increased attention. The hit pieces practically write themselves.

dbt00 6y ago

Social media companies often check for things that are against the TOS when a media storm is brewing, this is not new. They're trying to stay ahead of negative press.

bitcharmer 6y ago
Yes and no, by banning WSB social media created negative press too. There's an implication: "if they got banned then there must be something wrong with them; probably racist or nazis".

duxup 6y ago

Robinhood's actions could be independent of whatever happened with Facebook and Discord.

_trampeltier 6y ago

I also don't think it's the 100% truth. First, I don't understand why you couldn't buy just some stocks. If RH really had not enough money, you couldn't buy any stock. Second, when you buy stocks on RH or any other exchange, you have to have the money on there on the account. So the money is there. There is no risk on the long side at all. Third, RH was not the only one, suddenly several exchanges have the same problem at the same time .. no I don't think so.