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These are probably margin calls for people trading on margin which is 100% legal and the risk you take when trading on margin.
though there's also this screenshot: https://twitter.com/555Sunny/status/1354854993946406917?s=20
can anyone confirm if this is actually happening or if this is what margin trades at robinhood look like?
what on earth?!?! I can understand mandatory liquidation due to margin requirements. But AFAIK those don't show up as "orders" on your account that you can see in time to try to cancel.
I’d guess that this must be a margin account. In that case the broker is perfectly entitled to liquidate positions that they consider too volatile and risky. If it’s a cash account, then yes, they’d have no right to do this. I’m no lawyer, but I’d assume you’d very likely be able to sue them for any losses.
The reason it looks like a normal order is because it Robinhood makes it look like one, as it becomes a cash purchase once the funds and purchase settle
Earlier quoted context omitted.
Thank you. This WSB GameStop phenomenon is one of the most poisonous news stories I've seen in the history of the web. It seems to induce irrationality and melodrama as though it were a psychedelic drug.
Maybe for you it's a news story, but for many of us it's a revolution.