High-flying Reddit stocks whipsaw as platforms like Robinhood curb trading(axios.com)
axios.com
High-flying Reddit stocks whipsaw as platforms like Robinhood curb trading
https://www.axios.com/robinhood-gamestop-restrictions-370adfcb-fe22-494d-85e7-eb9c4a98bed7.html
29 comments
https://news.ycombinator.com/item?id=25941431
"Curb Trading" is certainly a creative way to say "locked buy orders but allowed sells so that their largest partner loses less money"
If the SEC does nothing about this its time to reevaluate the existence of the SEC in its current form.
If the SEC does nothing about this its time to reevaluate the existence of the SEC in its current form.
Justin Kan (Twitch founder) is calling for Ken Griffin and Robinhood's co-founders to jailed.
> 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.
See https://twitter.com/justinkan/status/1354856228661334017.
> 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.
See https://twitter.com/justinkan/status/1354856228661334017.
It's time to immediately evaluate many systems in their current form.
in fact, I'd like a cronjob for that. we can't be reviewing only after something major happens.
"Stocks react predictably as Robinhood uses its platform to manipulate the market"
I wonder if anyone shorted before trading was halted on multiple platforms? Because if there was, that's essentially using insider information/manipulation. The problem is that the SEC is a rotating door between these same firms, so have no reason to intervene.
Well, there's certainly an abundance of rumours and gossip. This tweet has been widely circulated among UK trading/fund employees.
https://twitter.com/justinkan/status/1354853920762253315?s=2...
But it's all getting murkier as it all gets louder.
https://twitter.com/justinkan/status/1354853920762253315?s=2...
But it's all getting murkier as it all gets louder.
I think we have to give the SEC a bit of time before passing judgment.
I mean they had years after the 2007/08 crash, and nobody went to jail or even lost their license.
Right, as I said. They essentially got away with it, even with most of their profits intact.
A couple got a short suspension, but they're likely back at it today.
A couple got a short suspension, but they're likely back at it today.
Well, no, here's what you said:
> the SEC is a rotating door between these same firms, so have no reason to intervene.
The SEC can intervene, and does intervene. I don't know why you're talking about jail. The SEC doesn't throw people in jail. It doesn't even have the ability to file criminal charges by itself; prosecutors like the US Attorney for the Southern District of New York do that. And they have.
Besides, I don't think this situation is similar to the financial crisis for several reasons. Not the same actors, not the same markets, not the same securities...
> the SEC is a rotating door between these same firms, so have no reason to intervene.
The SEC can intervene, and does intervene. I don't know why you're talking about jail. The SEC doesn't throw people in jail. It doesn't even have the ability to file criminal charges by itself; prosecutors like the US Attorney for the Southern District of New York do that. And they have.
Besides, I don't think this situation is similar to the financial crisis for several reasons. Not the same actors, not the same markets, not the same securities...
If they allow selling, who is buying? This is clear market manipulation.
That's why I think it's pretty blatant that this is an attempt to artificially deflate the price. Shorts can keep re-leveraging themselves and driving the price down because you've tied the hands of the demand. Absurd.
...it was halted on a few platforms, but there are many brokerages where buying was not halted.
That seems less-and-less true as time goes on. Many brokers are not allowing users to buy GME even if their UX implies you can.
Hedge funds
Is it possible that there really is no rhyme or reason why stocks go up other than large amounts of money suddenly piling on over made up catalysts?
It would be hilarious if we really let this system create all of our upper class and elites and took this long to see it exposed.
It would be hilarious if we really let this system create all of our upper class and elites and took this long to see it exposed.
I don’t think that has ever been a secret, it’s exactly what it is.
This is one reason to drive everyone's retirement into 401ks.
The more stock that is held in 401ks, the easier it is for the hedge funds to manipulate stock prices with very few movements, because the majority of the stock is held long term without the holders knowing or being interested in the particular stock.
The more stock that is held in 401ks, the easier it is for the hedge funds to manipulate stock prices with very few movements, because the majority of the stock is held long term without the holders knowing or being interested in the particular stock.
I wouldn't call the catalysts made-up, necessarily
Trading algos have been fine tuned a certain way. Now suddenly some group changes the conventions and rules of investing, is confusing the system. This is not going well with many investors and funds.
> The best-performing stocks this week are brands familiar to anyone who used to hang out in malls as a kid in the mid-2000s.
Ah nostalgia for Spencers, KB Toys, Toys R Us, Hot Topic...
Ah nostalgia for Spencers, KB Toys, Toys R Us, Hot Topic...
Robinhood is now reportedly force-selling GME, though I've seen nothing but screenshots to confirm.
So it's okay for billionaires to short GME but when people on reddit come together it's a problem?
I hope wallstreetbets crashes the market and makes everyone on the NYE cry like a baby. The unfortunate reality is that will never happen; they will just all up Biden and he'll cut them a check.
I hope wallstreetbets crashes the market and makes everyone on the NYE cry like a baby. The unfortunate reality is that will never happen; they will just all up Biden and he'll cut them a check.
I see it more like RH knowing this thing is probably going to tumble really hard and many of their customers might be holding part of the bag (with borrowed RH money) when it does implode, so they're limiting further exposure.