Robinhood says it didn't proactively sell shares of GameStop, AMC, or any other buzzworthy stocks without traders' permission, denying claims made by some users
Traders say they intended to keep holding — No, Robinhood tells The Verge, it didn't sell off full shares of GameStop …
Robinhood must rebut user claims that shares were sold without permission, putting its execution records and customer communications at the center of the immediate dispute.
GameStop and AMC traders face a platform where purchases had been restricted while Robinhood denies altering their held positions without instruction.
Second-order effects
Robinhood’s risk-management restrictions become a sharper competitive liability for retail brokers, because customers will assess not only fees and access but also the conditions under which trading can be curtailed.
The legal protection described in related coverage shifts dissatisfied traders’ practical leverage toward public scrutiny and regulatory complaints rather than a guarantee that every requested trade will be executed.
Third-order effects
If brokers continue to invoke risk controls during concentrated volatility, retail trading will operate less like unconditional market access and more like access governed by platform-set operating limits.
The later regulator investigations cited in related coverage point toward greater scrutiny of how brokerages disclose and administer those limits, especially where account permissions are disputed.
The trend: Retail brokerages are being tested on whether frictionless trading promises can coexist with discretionary risk controls during market stress.
The astronomical rally in GameStop has imposed huge losses of nearly $20 billion for short sellers this month — but they're not budging. https://www.cnbc.com/...
GameStop short sellers have suffered a mark-to-market loss of $19.75 billion year to date, according to @S3Partners Still, most are holding onto their bearish positions or they are being replaced by new hedge funds willing to bet against $GME https://www.cnbc.com/...
Wall Street is melting down over GameStop's price, but was perfectly cool with Tesla's stock going from $60 to $860 in the course of a year after Elon Musk broke both windows of a Tesla truck on stage https://twitter.com/...
According to Robinhood's investing page, people who already own GameStop are restricted from buying any additional shares. And customers looking to open a new position in GameStop can only purchase 1 single share. AMC is limited to 10 shares. https://robinhood.com/... https://twi…
I keep thinking of a quote, which apparently John Adams never said but they put in his mouth in the miniseries: “A mob is no less a mob because they are with you.” https://twitter.com/...
NEW: I just learned a Colorado man named Chance Daniels has filed a lawsuit against Robinhood and other online brokerage firms over the GameStop saga. It sounds like it could potentially be a class action lawsuit. #9NEWS
OctoFi did not pressure @sequoia to pressure @RobinhoodApp to halt the trading of any stocks. This rumour is completely false. But any rumours #wallstreetbets should #DeleteRobinhood and trade Stocktopus tokens in #DeFi is irrefutable. https://twitter.com/...
Anyway, I fully expect to get pillaged for years to come for articulating what seems to me an absolutely uncontroversial view. Who says discourse is dead? Huzzah! https://www.wsj.com/...
“Both are what philosophers call “closed epistemic systems,” worldviews that are unaffected by information that contradicts them. It's confirmation bias on steroids. It's also the logic of a cult, achieved with some of the same psychological tricks.” https://twitter.com/...
Why stonks now? Short version: People are still stuck at home seeking the next shiny object. Qanon fizzled. The energy that gathered rioters to the capital is at a lull. Bitcoin seems positively staid. But: $GME! https://www.wsj.com/...
Robinhood, less than 12 hours ago: “There was no liquidity problem” New York Times, now: Robinhood, in Need of Cash, Raises $1 Billion From Its Investors https://twitter.com/...
The creator of WallStreetBets, the subreddit where day traders have rallied to take on hedge funds over GameStop, is Jaime Rogozinsky, son of Jacques Rogozinsky, a career public official in Mexico who oversaw a wave of privatizations in the 1990s: https://www.wsj.com/...