2 ms·
> it got limited by the big guys (because it literally had the potential to bankrupt Robinhood) This is usually inaccurately framed by r/wsb superstonk conspir
by reducesuffering 3y ago
> it got limited by the big guys (because it literally had the potential to bankrupt Robinhood)
This is usually inaccurately framed by r/wsb superstonk conspiracy drivel, although technically sort-of true if "big guys" == DTCC and "potential to bankrupt Robinhood" only if DTCC didn't do it's job of (always) requiring capital for extreme volatility.
The real financial-literate reason is that the trades are going through DTCC, and because of the huge, immediate price fluctuation (volatility), collateral requirements shot up (by necessity of ensuring a brokerage wanting those trades can actually follow through), and Robinhood didn't have the capital to post collateral for those trades and literally couldn't offer them. Many other brokerages also couldn't offer buys because of this.