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I saw this on Twitter and couldn't find any sources to confirm that the e-mail screenshot is real. Take this with a pinch of salt, it might be fake.
https://twitter.com/dreamwisp/status/1354865709998723072
edit: My bad, it's "just" cancelling their orders, not selling anything on their behalf.
> due to the unreasonable risk involved in brokering your position, we have closed your X shares of GME for an average price of Y What in the world?? "In order to protect you from yourself, we have taken away your free will. Thanks!"
Where does tat say "to protect you from yourself"? Reads to me a lot more as "since brokering your position is an unreasonable risk to us, we stop doing so" (and the right to do so is likely lined out in their ToS)
Most likely margin calls.
Will repeat what I said above: This morning Robinhood conspired with Citadel to halt trading amid a short ladder sell to drive the price lower, allowing shorts to cover their losses with no competition. This is blatant market manipulation and anti competitive behavior, and must be stopped. Why does everyone insist on protecting billionaires who insist on playing the game with a different set of rules than the rest of…
Do you have evidence that happened, or are you arguing from pure cui bono circumstantiality?
Browing the top of reddit right now is really reminiscent of /r/The_Donald, particularly the shift from a bunch of 'ironic' jokers to conspiracy theories and shouty chest beating and calls for upvotes. I'd treat anything like this with a huge pinch of salt.
Liquidate, restructure, hose commons.
It's GME -- it's a dead company trapped in yesteryear.
This feels like RH is going to go under if they don’t make this move? Are they holding a lot of risk by not doing this or something? And what repercussions would they face, surely they’ve flagged that risk and are doing it anyway.
Most likely margin calls.
Yep. I’ll repeat what I said in another thread: It’s really kind of ironic. People are knee-jerk blaming RH for closing margin positions because they didn’t fully understand how they work and the risks involved. Simultaneously, the same people are blaming RH for stepping in the way of what very certainly would have turned into a bad trade for a lot of people. I don’t take RH’s side but it’s hard to see a winning play…
Robinhood's behavior here is wicked and wrong. Yes, Robinhood's EULA technically allows them to do this wicked thing. The same EULA says that Robinhood can't be sued over it or anything else. It's about time we talk about how it's not in the public's interest to allow companies to put arbitrarily user-hostile terms in their user agreements.
Some of the margin calls may have been triggered earlier than investors may have anticipated given that (I believe) Robinhood recently adjusted their margin requirements for GME. (It’s also normal for brokers to raise margin requirements on particularly risky stocks, which GME clearly is at the moment)