from wsb post that Citadel reloaded shorts before telling rboninhood to halt trading
If this is true the both Robinhood and Citadel did this knowing they would get caught more than likely. I think this means that they expect the "punishment" to be less than the cost of not taking this action. We have seen a pattern of fines that are lower than the profits (Wells Fargo, BofA, Equifax, etc.) and so they figure better to protect their short positions and make a lot of money, then pay a little extra "tax" in the form of penalties.
This is a pattern that has played out again and again and if we allow it to happen again then we are the fools.
big money 100% runs the show like we all know. some people are just getting an out in the open blatant manipulation by them. it's so blatant it's forcing politicians to speak up.
the real question is what is the fallout? will congress protect the super wealthy's casino and crack down on the poors, or will they give big money a tiny slap on the wrist which would cost far less than not fucking over the people?
my guess is the latter, with a sprinkling of the former.
The real question is whether the price dip came from panic selling or insider trading. If there's no panic selling, then Citadel just dug themselves a deeper hole.
I have not seen any popular posts advocating for people to sell. Everyone seems to be digging their heels in.
The goal is to force Melvin Capital to buy GME at cartoonishly high rates. Their positions will never expire, but they begin to fall into legal trouble for complex financial reasons I don't understand on Friday. Once they are under pressure to begin buying back shares, and that's when things get wild.
from wsb post that Citadel reloaded shorts before telling rboninhood to halt trading
thoughts?
big money 100% runs the show like we all know. some people are just getting an out in the open blatant manipulation by them. it's so blatant it's forcing politicians to speak up.
the real question is what is the fallout? will congress protect the super wealthy's casino and crack down on the poors, or will they give big money a tiny slap on the wrist which would cost far less than not fucking over the people?
my guess is the latter, with a sprinkling of the former.
An electrician at robinhood goes to prison for 5 years and everyone with a gme stock gets 10 bucks from a class action lawsuit. The American way
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The real question is whether the price dip came from panic selling or insider trading. If there's no panic selling, then Citadel just dug themselves a deeper hole.
I have not seen any popular posts advocating for people to sell. Everyone seems to be digging their heels in.
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I'd expect panic selling discourse to get signal boosted by bots.
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That's true, there's an argument there. We'll need real quantitative data before knowing what happened today.
oh we're getting some, and it's pretty clear who's benefiting the most from this
That's 3.3m of the 140m shares Melvin needs to purchase. But it doesn't seem that Melvin purchased those shares to cover their shorts.
The result of this trade is that the supply of GME is circulation has risen from 24m to 27m.
Here for this take :party-sicko:
More info here [1] The total shorts has been reduced from 130% to 122% from all the bullshit today. That's still unheard of lol
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The goal is to force Melvin Capital to buy GME at cartoonishly high rates. Their positions will never expire, but they begin to fall into legal trouble for complex financial reasons I don't understand on Friday. Once they are under pressure to begin buying back shares, and that's when things get wild.
this makes sense for citadel and not robinhood, who chose their customers over the revenue steam in such a spectacular way that I doubt they survive
hope the workers there land soft
Citadel is one of robinhoods biggest clients too