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

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

#981

Post by baobabKoodaa »

floatingatoll wrote: post #976
fireeyed wrote: post #839

https://twitter.com/justinkan/status/1354853920762253315 >Just got a tip that Citadel reloaded their shorts before they told Robinhood to stop trading $GME. If this is true, Ken Griffin and the Robinhood founders should be in jail. This is class warfare.

'Reloaded' isn't a term I understand yet amidst the WSB stuff going on. Do you have a brief refresher on what it's slang for?

"Reloaded" in this context means they reopened their short position. As in, they had closed their short earlier, and now they opened it again. The implication is that they made a large bet that the stock price would fall, just before they changed the rules to cause the stock price to fall.

I have no idea if any of this is true.

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

#982

Post by conformist »

beachwood23 wrote: post #673
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…

I don't think this was Robinhood's choice. Robinhood doesn't actually execute any trades. They sell user's trade orders to Citadel, a trade executor. Citadel then buys the shares on the market, and sells them to Robinhood for a slight markup. It's how Robinhood offers trades for $0 fees. You pay pennies more per share, but don't have to spend $5 per trade. Citadel, and other trade executors, are refusing to buy share…

Citadel Securities is not Citadel Investments. This is important, because they operate on different sides of this: Citadel Securities is the market maker that is interested in Robinhood's flow. Citadel Investments is the hedge fund that bailed out Melvin. Now, whether it's good that they're connected, and up to what extent they should be allowed to is an important question.

Even if there had been some kind of illegal collusion, it doesn't seem likely that stopping trading would have helped Melvin to cover their short position, which they ended up doing.

There is probably no conspiracy here.

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

#983

Post by baobabKoodaa »

dataminer wrote: post #423

One of the things people don't realize is that all these short squeezed companies get put into a very hard position. CEOs at these companies don't want a situation like this, as it damages the company's reputation, CEO of Tilray has talked about it when Tilray got squeezed for two months. He said something interesting “My advice to those CEOs would be that, at times like this, your company is not your stock and your…

If brokers like RH don't want their name associated with regular-joe-lost-everything-trading suicides, then they surely will not allow regular Joes to buy GME stock right before they manipulate the stock price to crash... No wait, that's exactly what they did.

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

#984

Post by rjbwork »

Quarrelsome wrote: post #402
krelian wrote: post #323

Earlier quoted context omitted.

At least for GME the stock is still rising uncontrollably. If the WSB crowd who mainly uses Robinhood can't buy then who is pushing the price up?

I feel like we're bordering on religion here (which means it doesn't have to be grounded in logic) and its possible that people who were rewarded for holding bitcoin have happily added an extra punt to this campaign. If you can click all the buttons to deal with crypto then I don't imagine its too hard to trade without Robin Hood.

I thought I was done with $GME. I've made money on 3 legs up at this point. But seeing Robinhood do what they did, I closed all my positions, will be withdrawing all of my cash and closing my account ASAP.

I opened a TD Ameritrade account this afternoon and bought a few shares of $GME on principle.

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

#985

Post by fragmede »

simias wrote: post #575
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…

While what you say is plausible, can't it also simply be that they saw a gigantic portion of their userbase making these incredibly risky bets and they were worried that it'd end up blowing in their face?

Try calling up your local Charles Schwab office to ask them if they'll stop you from making bad trades. While you're there, also see if they'll help you get your money back if you lose money on bad trades.

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

#986

Post by bargl »

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…

I'm going to start spreading this around. It's a comment by someone else who points to an interview of the WeBull CEO and why they had issues. It's pretty clear that this is a process issue, not necessarily a RobinHood is evil issue.

https://news.ycombinator.com/item?id=25950191

Link to the video from the OP. https://finance.yahoo.com/video/heres-why-robinhood-restrict...

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

#987

Post by bargl »

dilippkumar wrote: post #842

Question: Why shouldn't everyone pull their money out of Robinhood asap? Thesis: Suppose a sufficiently large number of people believe that the market is going to crash one day. Robinhood has just shown us that it will consider locking up everyone's accounts and prevent a sell off while the rest of the market cleanly exits after cutting their losses. Robinhood investors will be left holding the bag once Robinhood reo…

I'm linking a comment to someone who kind of addresses this. I've also linked the interview below. It's an interview of the WeBull CEO and why they had issues. It's pretty clear that this is a process issue, not necessarily a RobinHood is evil issue.

Long story short, the clearing house (similar to when you buy a house) assesses risk and assigns terms based on that. The risk got so high that RobinHood couldn't cover it or their clearing house couldn't cover it anymore.

Whether or not the clearing houses are in bed with these brokerages remains to be seen.

I was also pitchforks out earlier today, and willing to move to webull all my stocks, but then I did more digging and this seems more reasonable. RobinHoods press release was garbage tho.

https://news.ycombinator.com/item?id=25950191

Link to the video from the OP. https://finance.yahoo.com/video/heres-why-robinhood-restrict...

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

#988

Post by lend000 »

Truly a terrible idea on Robinhood's part, but most of the high-profile outrage seems to come from people who typically are in favor of protecting people from themselves. Seems a bit hypocritical to support investor accreditation and then lambast this move.

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

#989

Post by mysterypie »

For anyone like me who needs an ELI5, the best comment I found that explains what this story is all about is this:

https://news.ycombinator.com/item?id=25949669

Hacker News needs a way to mark the best comments when there are 1600 comments to read. Years ago, HN used to publicly show karma score of every comment. They eliminated that (and probably for good reasons), but it was useful to find the best comments. Some other way to find the most incisive comments woud be great.

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

#990

Post by TheColorYellow »

DC1350 wrote: post #292

For a lot of young people, the only paths to a regular life are either work hard for 5-10 years, live like a poor student, save the majority of their money and gamble that life will be affordable at the end, or just gamble away their money today. It’s so much harder to reach regular milestones that it’s sometimes not even worth the effort. I don’t think taking this away from a bunch of nihilistic young men is going t…

> On an unrelated note, start preparing yourself for a neo-feudal society now

What would it mean to prep for this? What would a neo-feudal society actually look like?

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