Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

twitter.com

Post reply on HN
Print view View original

31–40 of 1001 posts

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#31

Post by logicchains »

frongpik wrote: post #12
mizzack wrote: post #5

Yep, as of last night RH had also delisted 1/29 options for GME. 2/6 options are still available, which maybe points to RH hoping/thinking this all unwinds in the next few days. Sign me up for the class action...

Don't the ToS include a waiver of taking any legal action against RH, class action suits in particular, and a binding arbitration clause in case you really want to make some noise?

Just because something's in a TOS doesn't make it legally enforceable, especially if you've got enough money collectively for expensive lawyers.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#34

Post by moocowtruck »

why would people use this site? it seems very unreliable, i tried with many attempts last night to signup and all I get are strange errors..why would i want to conduct serious business through them if they can't simply handle signups

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#35

Post by ForHackernews »

wavefunction wrote: post #10

"Free marketeers declare markets a little too free for their tastes" I've been really enjoying watching this whole thing pan out but you had to know that the 'professional capitalists' who brought us the economic crisis in 2009 would close ranks and appeal to the SEC to save them from the vicious retail investors. Robin Hood doesn't want to be banished to the proverbial wastelands because their customers are more cle…

I'd argue Robinhood customers are not more clever, but they are more irrational/motivated by non-market goals.

Getting absolutely wrecked by irrational market behaviour is a rite of passage for small traders, and it's only fair that some bigger hedge funds should learn that lesson too.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#36

Post by snowwrestler »

Brokers are worried about their legal exposure at this point.

They could face lawsuits from investors in Melvin and other hedge funds, who will allege that the brokers knew they were facilitating intentional financial harm. It doesn’t matter if these are likely to fail; they are expensive lawsuits to defend against and therefore may result in settlements.

And they could face class action litigation from trial lawyers representing retail investors who lose money when the bubble finally bursts. Again, maybe the brokers will win these suits but they are expensive and bad for the brand. “I used Robinhood and lost my life’s savings” is not the news story they want to see 2 months from now. (Edit to clarify: class action litigators have PR strategies to feed these stories to reporters, hoping bad press will convince their target to settle.)

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#37

Post by zarkov99 »

This is unbelievable. If there ever was a time to be outraged. This is naked corruption as usual hiding under the shabbiest veil of virtue. RobinHood traders can bankrupt and kill themselves, and that is fine, we will continue prodding them to trade more often, but once we get a call from one our hedge fund buddies, moaning about the rubes stopping him from raping another company, we will shut the rabble down.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#38

Post by Dem_Boys »

This whole Game Stop situation has made the power of the rich so obvious and disgusting.

They temporarily shut down the market, banned the discord server, and are now preventing people from buying stocks on the most popular app used by small time investors.

All of these moves hurt the small time investor trying to cash in on the next bitcoin-like bubble. This just creates more division, more disgust, and more of a class war than already exists. So sad to see.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#39

Post by shut_it_down »

wyldfire wrote: post #26

Can someone help me understand Robinhood's POV? This just seems so outrageous that there must be some sane rationale that I'm not seeing. Why do Robinhood, Reddit, Discord, etc feel like they have to respond to this? Whether the investments being made are responsible or not, it doesn't seem like it should be their place to intervene. If the hedge funds over-shorted GME and WSB recognized that and traded against that…

One of Robinhood's main business partner is Citadel (RH sells their order flow to Citadel). Citadel is also the firm that has bailed out Melvin Capital, one of the hedge funds that took a huge short position in GME.

Probably just a coincidence.

Re: Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

#40

Post by metalliqaz »

speeder wrote: post #9

This sort of stuff will put people more and more on edge, there is the deplatforming going on, people asserted their power financially, and now getting that removed too, the powers that rule USA don't realize that soon the only tool left to common people is violence? Even more with some irresponsible newspapers blaming the whole thing on GamerGate and Alt-Right, effectively pushing away people that previously could b…

Oh please. Robinhood's business model is not designed for this kind of thing. They are not required to tank their own business to allow malcontents to feel better about themselves.
Post reply on HN