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

431–440 of 1001 posts

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

#431

Post by ChicagoBoy11 »

frongpik wrote: post #303
zarkov99 wrote: post #37

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.

What matters is the lower 50% (aka the poor) get to see, for a brief moment, how the machine really works. WallSt will get their way this time, but I doubt those people will just live as usual with the gained knowledge.

We all collectively saw Wall St. dip into our pockets in 2008 yet here we are, aren't we?

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

#432

Post by BitwiseFool »

hagibborim wrote: post #405
TheRealDunkirk wrote: post #87

Earlier quoted context omitted.

> the powers that rule USA don't realize that soon the only tool left to common people is violence? What's even more concerning to me is that, to platforms looking for an excuse, your comment could be painted as trying to "incite" violence, and used as a justification to ban you.

Along these lines, bad-faith actors can plan racist messages as a pretext for banning arbitrary communities

There is a precedent for this, look at all the shenanigans r/AgainstHateSubreddits is known for.

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

#433

Post by Spinnaker_ »

JumpCrisscross wrote: post #385
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…

> Can someone help me understand Robinhood's POV? Robinhood is a margin-lending options-trading broker. If a customer falls down on a trade, it is ultimately liable. If a retail customer loses money and makes a FINRA complaint that Robinhood induced them to buy through its gameified interface, it is liable. Risk and compliance likely made this call. Also, Robinhood makes its revenue from market makers. They are the c…

This is most likely the answer. They are taking on a lot of risk allowing this type of trading behavior. They likely don't have suitable risk infrastructure developed to feel like they have a handle on it, so they shut it down.

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

#435

Post by EGreg »

zarkov99 wrote: post #37

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.

Hey, crowd, you are not allowed to buy up the stock like that! Someone is gonna get hurt on the way down!

“Here let us help you” — closes down exchanges, panic sell — “isn’t that all better?”

People with their money stuck and unable to cash out... so much better eh?

I smell a huge class action lawsuit

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

#436

Post by Simulacra »

I predict that we will see a law or regulation which will require that a person hold a license from the government in order to trade stocks, or certain securities. In every state there are laws that you must hold a license to perform certain tasks, so it's not inconceivable that the government will say: "This is too dangerous to let just anyone do, look what unlicensed, and untrained people did with GameStop. The government must require that only a professional licensed financial trader buy or sell stocks and securities."

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

#437

Post by cableshaft »

agumonkey wrote: post #85
shut_it_down wrote: post #39

Earlier quoted context omitted.

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.

I follow the bitcoin crowd a bit. Everyday they issue claims like 'bitcoin was made to free us from wealthy people games' it felt echo chamber / tinfoil at times. This isn't hurting their theories.

Wealthy people games exist in bitcoin as well. Especially now with all the institutional investment and futures markets. I say this as a long-time bitcoin fanboy as well.

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

#438

Post by joering2 »

zarkov99 wrote: post #57

Sure. Robinhood got a call from someone very powerful in their circle, politely asking them to stop the amateur plebes from interfering with their professional market manipulation. We are taking about people commanding titanic amounts of capital and (indirect) regulatory power. Robinhood then had the choice, do we make enemies out of these people or do we just screw, er, I mean protect, our customers? Unburdened by a…

Now they made enemies of most of their clients. I bet not more than few weeks before you will see advertising from big shot lawyers on national TV welcoming you into class action lawsuits. Frankly, I am terribly disgusted by this news from Robinhood and I hope they will be sued into eternity... and then hopefully DOJ step in an see what they did was illegal. If you have Robinhood account, write you state AG. Show your outrage in writing so they can also get involved.

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

#439

Post by vincentmarle »

sltkr wrote: post #330
rswail wrote: post #159

As I understand it, the hedge funds had naked shorts. That's illegal. If they did, what is happening to them serves them right. Even if they didn't, a "short squeeze" is perfectly legal. If the short sellers think the stock is overpriced, and there's others that think its underpriced, then both sides are placing their bets and will deal with the result, either by making or losing a lot of money. This is not a "pump a…

> If the short sellers think the stock is overpriced, and there's others that think its underpriced, then both sides are placing their bets and will deal with the result, either by making or losing a lot of money. I don't think it's really a case of people disagreeing on the real value of GameStop stock. Framing it like this ignores important facts. This stock was trading around $4 in August, around $20 in the beginn…

Yeah, so... what? Which laws dictate that stock needs to be traded at “fair price”?
Post reply on HN