https://dailycaller.com/2021/01/28/janet-yellen-gamestop-citadel/

SMCJB 

That's the point of many here and on WSB. The system is being abused if people can short more shares than are outstanding. In reality its a timing issue. You don't have to have the borrow in your account before you short it. So you short it assuming you can get the borrow. Then tomorrow when you find out you didnt get the borrow, and have no prospect of getting the borrow, you can unwind your short with no penalty. So for that day, you were short with no borrow. That is happening all over the place.

That explanation doesn't make much sense to me. The hedge funds and investment firms aren't clicking a sell button and getting told the next day by the trade desk they couldn't get shares. They had their positions. Retail isn't big enough to short 40% of the float. The short interest being 140% of the float is absolutely kooky. There's something going one here, and no one knows what yet but I don't think it's a timing issue.

Also, can we not pretend that professional traders don't commonly laugh and joke about "ripping people's faces off" etc. or that these gigantic short trades basically profit off a retailer going out of business and laying off 40,000 low paid workers? You don't think Melvin Capital wants that to happen? Think they care about that damage? Huge financial blowups are almost a badge of honor on Wall Street. It's part of the industry. Your gain is proportional to the other guy's loss - especially in futures markets. You do financial damage to the loser whether you think about it, or like it, or not but that money still spends, right?

forrestang 

Class action hitting RobinHood now. Edit--- Saw this on bloomberg. Same outlet pen'd an article titled, "Robinhood is right to save day traders from themselves"

https://www.google.com/amp/s/nypost.com/2021/01/28/robinhood-hit-with-lawsuit-after-restricting-gamestop-stock/amp/

Article on the class action lawsuit filed in SDNY.

Now Robinhood saying it will make GME available for limited buys at tomorrow's open per CNBC.

edit.....Robinbood CEO due to be on CNBC

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mongoose 

https://www.google.com/amp/s/nypost.com/2021/01/28/robinhood-hit-with-lawsuit-after-restricting-gamestop-stock/amp/ Article on the class action lawsuit filed in SDNY. Now Robinhood saying it will make GME available for limited buys at tomorrow's open per CNBC. edit.....Robinbood CEO due to be on CNBC Sent using the NexusFi mobile app

Robinhood has every right to close positions secured by margin. They do not have to lend money to anyone if they don't want to. Isn't that what happened? If so the lawsuit is DOA. If it was a cash account then there's something to it I think...

BertV 

Robinhood has every right to close positions secured by margin. They do not have to lend money to anyone if they don't want to. Isn't that what happened? If so the lawsuit is DOA. If it was a cash account then there's something to it I think...

I dont think it was just margin it was set to close only for all positions. Saw someone post they could not even search GME in the Robinhood app will try to find that.

https://www.google.com/amp/s/markets.businessinsider.com/amp/news/robinhood-removes-gamestop-amc-reddit-wallstreetbets-fueled-stock-rally-gme-2021-1-1030015292


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BertV 

Robinhood has every right to close positions secured by margin. They do not have to lend money to anyone if they don't want to. Isn't that what happened? If so the lawsuit is DOA. If it was a cash account then there's something to it I think...

I think that that was predominately the case. But then again, a fair contingent of RobinHood users have no idea what margin really is and how it relates to Reg-T. But I think the lawsuit is DOA (depending on judge) but may end up in a settlement without acknowledging any wrongdoing. Usually cheaper to settle.

Half of all Robinhood accounts were trading GME!

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Here is the email RH sent out tonight:

Quoting 

An update on market conditions Hi Tom, It’s been a tough day, and we’re grateful to you for being a Robinhood customer. In light of the extraordinary market conditions this week, we temporarily limited buying for certain securities this morning. Starting tomorrow, we plan to allow limited buys of these securities. We’ll continue to monitor the situation and may make adjustments as needed. This was a temporary decision made to best continue serving you, and was not an easy one to make. We know it’s led to frustration and confusion, and wanted to provide some clarity. As a brokerage firm, we have many financial requirements, including SEC net capital obligations and clearinghouse deposits. Some of these requirements fluctuate based on volatility in the markets and can be substantial in the current environment. These requirements exist to protect investors and the markets and we take our responsibilities to comply with them seriously, including through the measures we have taken today. To be clear, this decision was not made on the direction of any market maker we route to or other market participants. The past year in particular has shown us that the financial markets are for everyone—not just institutional investors and hedge funds. We’ve seen a new generation enter the market, and they’re sparking conversations about what it means to be an investor. We stand in support of you, our customers. Democratizing finance for all means giving more people access, not less. We’ll keep monitoring market conditions and will update this Help Center article with the latest changes. We also published a blog post regarding today’s events. Thank you again for being a Robinhood customer. We’re so grateful for your support. Sincerely, The Robinhood Team

Sorkin not letting the CEO off easy.

Big Mike 

Half of all Robinhood accounts were trading GME! Sent using the NexusFi mobile app

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