If I learned anything from watching Billions is that the fix is usually in and it is between the guys with lots and lots of money.
What an amazing inside trade -- knowing or forcing the Robinhood App to restrict the large majority of WallStreetBets from buying, and then shorting the hell out of it.
And they will probably get away with it too, which I also learned from watching Billions.
While it’s true that it’s a TV show, one of the aspects that makes it interesting is that the many immoral and self serving actions taken by the two main characters are often inspired by real life controversies or cases of financial crime or political corruption. With an attempt at splitting them into the two camps of “corruption outside the system” and “corruption within the system” personified by the two feuding main characters.
I think a lot of it is how things are. Of course a lot of it is over the top for dramatic purposes and everything in the show happens to the same set of characters as is needed in a drama... But the fundamentals I think are spot on.
There might be another layer to this story. Citadel securities is one of the major market makers that handles orders for Robin hood. I'm guessing they most likely were given a heads up. Granted the hedge fund is separate from the market making business but who knows right
Yeah even if one POD at Citadel (hedge fund segment) was short GME or increased GME short before Robinhood GME stop there will be many fingers pointed.
Justin mentions it is a tip and puts his reputation on the line to get the news out. How about having some balls to put your name on what you believe to be true?
Halting buy orders on stocks that the Wall Street powerhouses are betting will go down seems like enough for me... Refueling your shorts is the icing on the cake.
The elites will be fine regardless, they understand what they're doing and will just exit positions with losses if the they determine the risk is too high.
You know who want be fine? The idiot retail investors who actually use robinhood as a broker, lose all their money and can't pay rent because they lost it all gambling on something they didn't understand.
It won't be the elites holding the worthless stock when it inevitable crashes to 0.
> You know who want be fine? The idiot retail investors who actually use robinhood as a broker, lose all their money and can't pay rent because they lost it all gambling on something they didn't understand.
Well, then, I guess we taxpayers should bail them out, the same way we bailed out the banks in 2008.
You might not like it, but at least it would be fair.
I'm not on the side of the banks. The problem is people think they're hurting hedge funds, but the reality is the ones who will end up hurt most are the people who can't afford to take the losses.
Do you honestly think the majority of people who use Robinhood as a broker actually understand how short positions work and why they're driving the price higher?
It's clear price manipulation and it's exposing people to substantial risk they don't understand.
> Do you honestly think the majority of people who use Robinhood as a broker actually understand how short positions work and why they're driving the price higher?
yes, that is the entire reason that this situation began and the reason that people are excited about it! basic market dynamics are not some occulted mystery that only licensed brokers are privy to.
>The Redditors at r/WallStreetBets are now busting open the territory of finance. It doesn't take long for the average person to understand the language of finance if it is explained clearly... and professional investors are going to be pissed about it [...] So expect professional investors to hold the amateurs in contempt. Not because they are losing money. But because they have constructed an identity out of finance being exclusive & high status. They won't want to be associated with unwashed masses & will resist it
There will be investigation undoubtedly. So who's got more skin in the game?
Is it Robinhood with an official press release stating their decision didn't come from their market-maker, Citadel, and if this isn't true would face repercussions in court?
Or is it Justin, who like the rest of twitter-verse, if wrong, faces zero repercussions?
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[ 3.1 ms ] story [ 116 ms ] threadWhat an amazing inside trade -- knowing or forcing the Robinhood App to restrict the large majority of WallStreetBets from buying, and then shorting the hell out of it.
And they will probably get away with it too, which I also learned from watching Billions.
You know, it's a TV show, not a graduate level course on capital markets.
https://blog.robinhood.com/news/2021/1/28/an-update-on-marke...
As for re-shorting, my issue is there is no evidence of that so far. The fact its "some guy on twitter's anon mate" makes me think it's total bs.
You know who want be fine? The idiot retail investors who actually use robinhood as a broker, lose all their money and can't pay rent because they lost it all gambling on something they didn't understand.
It won't be the elites holding the worthless stock when it inevitable crashes to 0.
Well, then, I guess we taxpayers should bail them out, the same way we bailed out the banks in 2008.
You might not like it, but at least it would be fair.
It's clear price manipulation and it's exposing people to substantial risk they don't understand.
yes, that is the entire reason that this situation began and the reason that people are excited about it! basic market dynamics are not some occulted mystery that only licensed brokers are privy to.
>The Redditors at r/WallStreetBets are now busting open the territory of finance. It doesn't take long for the average person to understand the language of finance if it is explained clearly... and professional investors are going to be pissed about it [...] So expect professional investors to hold the amateurs in contempt. Not because they are losing money. But because they have constructed an identity out of finance being exclusive & high status. They won't want to be associated with unwashed masses & will resist it
https://cdn.robinhood.com/assets/robinhood/legal/RHS%20SEC%2... from https://robinhood.com/us/en/about/legal/
This would be significant, important news if true. Without confirmation, it's just fanning the flames.
lol fuck these guys, this apparently couldn't have happened to nicer people
"To be clear, this was a risk-management decision, and was not made on the direction of the market makers we route to." - Robinhood[0]
[0]https://blog.robinhood.com/news/2021/1/28/an-update-on-marke...
Is it Robinhood with an official press release stating their decision didn't come from their market-maker, Citadel, and if this isn't true would face repercussions in court?
Or is it Justin, who like the rest of twitter-verse, if wrong, faces zero repercussions?