Robinhood Reportedly Selling People’s GME Positions Without Warning, Investors Sue

originally posted by: marg6043
Ok, I heard of this today, lots of digest, but is this some new type of bubble about to burst, I am old school and I understood the markets the last time we had a crisis, but it was linked to the housing bubble.

Soo what is this one? a bubble or not

Maybe this will help.

Investopedia explains it this way:

Short selling is a fairly simple concept—an investor borrows a stock, sells the stock, and then buys the stock back to return it to the lender.

For example, if an investor thinks that Tesla (TSLA) stock is overvalued at $625 per share, and is going to drop in price, the investor may "borrow" 10 shares of TSLA from their broker, who then sells it for the current market price of $625. If the stock goes down to $500, the investor could buy the 10 shares back at this price, return the shares to their broker, and net a profit of $1,250 ($6,250 - $5,000). However, if the TSLA price rises to $700, the investor would lose $750 ($6,250 - $7,000).

Retail ('little guy') investors via Reddit coordinated an attack on the hedge fund short sellers, skyrocketing the price of the various stock prices, causing billions in hedge fund losses.

The establishment got mad and cheated by prohibiting the little guy from trading in these stocks, while bailing out the hedge funds, and now seems to be forcing the little guy to exit their holdings without their permission.

Basically, they stole from the little guy (who stood to make billions in the aggregate) to protect the hedge funds.

Keep kicking in them teeth folks.


Its glorious.

a reply to: loam

And this is only working out this way because unlike most shorts they got greedy and shorted past the point of exit if they got caught. Take AMC for example...there is enough buyable stock to exit all shorts 10x over or more...with Game Stop there just isn't nearly the same room to maneuver and now they are screwed into oblivion if they can't shake enough shares loose in time. Which is why all the manipulation today...their previous attempts to short ladder it down haven't worked. If what I've read throughout the afternoon is correct the moves today didn't free up enough either...but we will find out a lot tomorrow and Monday.

originally posted by: RickyD
a reply to: loam

And this is only working out this way because unlike most shorts they got greedy and shorted past the point of exit if they got caught. Take AMC for example...there is enough buyable stock to exit all shorts 10x over or more...with Game Stop there just isn't nearly the same room to maneuver and now they are screwed into oblivion if they can't shake enough shares loose in time. Which is why all the manipulation today...their previous attempts to short ladder it down haven't worked. If what I've read throughout the afternoon is correct the moves today didn't free up enough either...but we will find out a lot tomorrow and Monday.

I don't know much about the stock market..learning lots today This is so f'd up!

a reply to: loam


Yes I understand this because during the housing market crash many big companies did this to keep their stocks like they were doing good, and because many of them were tied to the retirement accounts of people, but then they got bailed out by the tax payer, every body knew this was wrong.

I have not kept with the markets for a while, I see that this people thought they could get away with doing what big guys do, sadly is not government bailout for them.

Wow I hope this guys go to jail,

originally posted by: Quantumgamer1776
This is insane, Wall Street is loosing their minds, the little guys finally figured out how to hit them where it hurts and they are pulling every dirty trick to try to stop us

but we are not stopping

everyone is holding with such diamond hands that exchanges are breaking federal law and selling without approval

If you are involved like I am, hold

Hold until they understand they don’t own us

Hold until they understand we are in control

Hold until the vampiric industry’s are forced back into their coffins

The sentiment circulating online is best exemplified by the joker standing in front of a burning pyramid of cash

“It’s not about the money, it’s about sending a message”

How about a step-by-step so we can help to?....pretend you knw squat about the Market but want to pile-on and make the Snowball bigger with a few hundred bucks.What do you do or were do yu go t learn fast?Exactly.Im not into stocks or the Market but I am into screwing the old guard.

a reply to: loam

This sums it up

a reply to: Flyingclaydisk

In short the hedge fund managers who bet on failures are about to lose 70 billion dollars in shorts. Can’t have that now can we......

This just in:

Robinhood Is Said to Draw on Bank Credit Lines Amid Tumult

I dunno. RH may not survive this.

If I had money there, I'd probably pull it out right away.

a reply to: one4all

Well the basic just of the whole saga is...the short selling scumbag hedgefundies need the physical stocks they owe their lenders because they borrowed them to sell off to devalue game stop to bankruptcy. If they cant get them before their loan is called in they have to start buying whats there until the loan is covered. The forced mass buy will cause a run up which because they will have to buy and sell everything more than once will feed a cycle of price increases until they're able to cover the short.

The more stocks that they cant have means the higher prices will soar as they have to cycle through what they can buy...each time they cycle the loss get worse too.

I think the best historical comparison is VW short squeeze if you want something to lookup.

I am not giving any financial advice mearly explaining the situation as I understand it...what you do with that is on you.

a reply to: loam

Sadly I have to wait 3 days to dump my free stock and close out...

Edit:
The funny bit about this...their platform is way faster and smoother than what fidelity has...which is where I went this morning...but I will remember who said free markets and equal ability to interact on them was important to them. I can watch my picks elsewhere and get a quicker view on things just to support that guy over the guy kicking the little man in the nuts.

And this is why they'll get away with it.

AOC and Cruz agree. Cruz offers to work with AOC to try to do something on the issue. AOC tells Cruz to shove it because, "You nearly got me killed. Sit this one out or resign if you want to help."

Some are still too busy being outraged to do what they should.

Us vs them


Politicians can sit this one out.

a reply to: JinMI

Basically the people at the wheel are more interested in fighting each other than in anything resembling the law.

As someone with a memory I would like to share this gem from none other than ROLLING STONE from 2013!!!

www.rollingstone.co... m/politics/politics-news/everything-is-rigged-the-biggest-price-fixing-scandal-ever-82255/

a reply to: ketsuko

We know white collar crime is not serious. Might as well serve up other forms of justice.

I realize this is especially hypocritical but to be fair I'm only watching from the sidelines.

gab.com...

I would've gone ballistic.

It's beyond hypocritical. Billionaires and friends are whining and asking for regulation when a bunch of nobodies short squeeze their short.

Screw the billionaires and robinhood.

They can crash the economy (losing average people millions) without repercussions but then they cry foul when their hedge fund loses a short to average folk.

I hope this trend will continue.

originally posted by: loam
This just in:

Robinhood Is Said to Draw on Bank Credit Lines Amid Tumult

I dunno. RH may not survive this.

If I had money there, I'd probably pull it out right away.

They have access to your bank accounts via plaid. I’d be scared.

originally posted by: one4all

originally posted by: Quantumgamer1776
This is insane, Wall Street is loosing their minds, the little guys finally figured out how to hit them where it hurts and they are pulling every dirty trick to try to stop us

but we are not stopping

everyone is holding with such diamond hands that exchanges are breaking federal law and selling without approval

If you are involved like I am, hold

Hold until they understand they don’t own us

Hold until they understand we are in control

Hold until the vampiric industry’s are forced back into their coffins

The sentiment circulating online is best exemplified by the joker standing in front of a burning pyramid of cash

“It’s not about the money, it’s about sending a message”

How about a step-by-step so we can help to?....pretend you knw squat about the Market but want to pile-on and make the Snowball bigger with a few hundred bucks.What do you do or were do yu go t learn fast?Exactly.Im not into stocks or the Market but I am into screwing the old guard.

Get an account on a stock trading platform. Type in GME. Buy an amount. Each platform is probably different and im sure there are youtube videos showing how to buy basic stock. Videos are better than a typed explanation IMO.

Don't use robinhood (as that defeats the purpose)

The idea here is to hold on to GME (gamestop) and make it go up. The billionaire hedge fund bet against it and the further it goes up, the more money they lose.

It's super volatile, so just assume you'll probably lose. I honestly have no idea what will happen.

Reddit
Wall Street Bets
www.reddit.com...

Another website is riding the wave of this news and attempting to blow up dodgecoin. Which is a meme coin.

Just an interesting side note. I think you can buy dogecoin on BinanceUS.
It's pretty hilarious.

And none of this is financial advice