Wall Street Is Panicking - The Little Guys Beat Goliath

[Michael]

Nope, I have been with the same broker for 15 years and still have paper copies of the contract. It gives them the legal right to liquidate my positions in order to protect themselves.

How many times over those 15 years did they liquidate your position on any stock without your permission?

Now, that doesnt mean everything Robinhood did was legal.

I don't believe that *anything* they did was legal.

People like you are so caught up in ideology that you dont see what is going on.

If you read my first post, you'll see that I know *exactly* what is going on.

This is day traders making money off of ignorance.

No, they made some money off a *hedge fund's own greed*, but only relatively modest amounts of money, unlike the hedge funds that make hundreds of billions of dollars by short selling stocks and trash taking them to the public to drive the prices down.

I'm sorry but IMO this is probably *the* most blatant example of stock fraud that I've seen in my lifetime. The Sheriff of Nottingham broke into the financial homes of numerous people, stole their stocks, sold them, and then gave them pennies on the dollar. That's outright fraud IMO. Like I said in my earlier example, if someone broke into my home without my permission, stole my TV and jewelry, sold it to their friend for dirt cheap, and gave me the money, they'd go to jail. Only this time *billions* of dollars were involved in the theft.

 

[Michael]

Google Play deletes over 150,000 Robinhood app reviews after frustrated users leave one-star ratings

 

[variant]

And now there is evidence of actual crimes by these companies. Citadel reloaded their shorts just before RobinHood suspended buying on their app. They colluded to manipulate the markets so the hedge funds could make their money back.

These guys should be in jail.

They definitely should, but they have all the money so I find it unlikely.

 

[variant]

How did Robinhood decide that these individuals were 'in over their heads' rather than simply making a political statement and making a conscious choice to 'peacefully protest" the system?

I see class action lawsuits in Robinhood's near future.

If they were borrowing money to buy shares they can be "too far underwater" and have their positions liquidated.

A margin maintenance requirement is usual for any trading platform.

However. If they suspended trading, attempted to force the price down and THEN declared folks margins too much they might be in for some serious jail time.

 

[Michael]

If they were borrowing money to buy shares they can be "too far underwater" and have their positions liquidated.

Who are they borrowing the money from? Does Robinhood even allow people to borrow money from Robinhood? (Sorry, but I've never used the app so I don't know)

A margin maintenance requirement is usual for any trading platform.

AFAIK they were simply buying (or trying to buy) ordinary stock which they had already paid for.

However. If they suspended trading, attempted to force the price down and THEN declared folks margins too much they might be in for some serious jail time.

It sure sounds like that was the case. I somehow doubt anyone from Robinhood would see jail time, even if that was the intent. I guess we'll have to wait and see how it plays out.

 

[Erik Nelson]

NY AG Looking Into Robinhood After They Restricted Trading of Certain Securities Thursday (charliekirk.com)

 

[Erik Nelson]

Live Q&A: RobinHood Users File Class Action Lawsuit Over GameStop; Permanent Wall Around US Capitol? - YouTube

 

[Michael]

Live Q&A: RobinHood Users File Class Action Lawsuit Over GameStop; Permanent Wall Around US Capitol? - YouTube

They had to know that was coming. I hope Robinhood loses that case, and I hope it's an enormous settlement. Their action were a blatant and overt attempt to commit stock fraud. By only allowing their users to sell their shares, and not allowing them to buy those shares, Robinhood ensured that the stock price could only go down, so any short sellers (hedge funds) were guaranteed to make money, and individual share holders were guaranteed to lose money. They stole from their own users to give money to the hedge funds.

That is just disgusting behavior and it's blatant stock fraud. If there was any justice at all, the SEC should also step in and ban/bar Robinhood and particularly the CEO of Robinhood from ever being able to engage in the selling of stocks ever again. They are simply untrustworthy, and they're colluding with the hedge funds.

 

[Erik Nelson]

Reddit post causes AMC and GameStop shares to soar; Biden Administration faces second lawsuit - YouTube

 

[Michael]

The more I learn about what happened with Gamestop, the angrier I get at the SEC.

Apparently the short sell of that particular stock had reached 140 percent of all of the Gamestop stocks in existence. What this means is that for the hedge funds to get out of their short sell position, they would have to buy every single Gamestop stock in existence, *more than once*! This is just fraud on a *massive* scale, and it's no wonder why the stock price went through the roof. Not only did Reddit users bust their fraudulent show, but by hanging onto the stocks and refusing to allow them to be "borrowed" against, there was simply no way for the hedge funds to meet their obligations. The hedge funds have been gaming the system for *decades*, and when main street finally confronts them with a valid way to thwart their graft, the stock brokers stepped in and 'fixed' the problem by not allowing anyone *except* for the hedge funds to buy gamestop stocks. That was collusion on a *massive* scale. They should all go to jail and they should all be barred from every buying or selling stocks ever again. It's not just the hedge funds that committed fraud, they were aided by the stock brokers. They all conspired with each other to steal money from main street. If the individuals that run the SEC don't change the system, even they are complicit in the crime and they too should end up in jail.

 

[VladTheEmailer]

The more I learn about what happened with Gamestop, the angrier I get at the SEC.

Apparently the short sell of that particular stock had reached 140 percent of all of the Gamestop stocks in existence. What this means is that for the hedge funds to get out of their short sell position, they would have to buy every single Gamestop stock in existence, *more than once*! This is just fraud on a *massive* scale, and it's no wonder why the stock price went through the roof. Not only did Reddit users bust their fraudulent show, but by hanging onto the stocks and refusing to allow them to be "borrowed" against, there was simply no way for the hedge funds to meet their obligations. The hedge funds have been gaming the system for *decades*, and when main street finally confronts them with a valid way to thwart their graft, the stock brokers stepped in and 'fixed' the problem by not allowing anyone *except* for the hedge funds to buy gamestop stocks. That was collusion on a *massive* scale. They should all go to jail and they should all be barred from every buying or selling stocks ever again. It's not just the hedge funds that committed fraud, they were aided by the stock brokers. They all conspired with each other to steal money from main street. If the individuals that run the SEC don't change the system, even they are complicit in the crime and they too should end up in jail.

Why are you angry about something that you admit, you don't understand? You have posted stuff that is factually untrue. Below is a link to the rule.

SEC.gov | Margin Position Sellouts

BTW, I've had my position liquidate twice.

 

[Michael]

Why are you angry about something that you admit, you don't understand? You have posted stuff that is factually untrue. Below is a link to the rule.

SEC.gov | Margin Position Sellouts

BTW, I've had my position liquidate twice.

I didn't say I didn't understand it, I said that I was learning more about it. I would appreciate it if you would stop putting word in my mouth. The more I understand what happened with Gamestop, the angrier I get at what happened.

IMO there *must* be some logical limit on how many short sells that can exist, otherwise this kind of a "rigged system" goes on indefinitely. What makes me angry is that the stock brokers blatantly colluded with the hedge funds to ensure that the price of that one stock (actually a few very important ones to the hedge funds) could not go up and they *overtly* helped the hedge funds at the detriment of the larger public. If the hedge funds want to engage in wild and financially dangerous speculation and outright gambling, then they shouldn't be aided and abetted by the stock brokers. That's blatant collusion.

 

[VladTheEmailer]

I didn't say I didn't understand it, I said that I was learning more about it. I would appreciate it if you would stop putting word in my mouth. The more I understand what happened with Gamestop, the angrier I get at what happened.

IMO there *must* be some logical limit on how many short sells that can exist, otherwise this kind of a "rigged system" goes on indefinitely. What makes me angry is that the stock brokers blatantly colluded with the hedge funds to ensure that the price of that one stock could not go up and they *overtly* helped the hedge funds at the detriment of the larger public. If the hedge funds want to engage in wild and financially dangerous speculation and outright gambling, then they shouldn't be aided and abetted by the stock brokers. That's blatant collusion.

You are claiming something that is blatantly illegal occurred, that requires evidence. If this is as blatant as you claim, evidence will be easy to come by, otherwise I stand by my claim and feel this belongs in the Conspiracy Theory forum.

Those Hedge Funds have closed their positions and now others have joined in and are shorting this stock. It will go down no matter what people say or do.

 

[tall73]

Why are you angry about something that you admit, you don't understand? You have posted stuff that is factually untrue. Below is a link to the rule.

SEC.gov | Margin Position Sellouts

BTW, I've had my position liquidate twice.

You have linked to a discussion of margin accounts. The allegation is that non-margin accounts were impacted.

Robinhood denies claims that it sold GameStop shares out from under its traders

The company claims it only worked within the confines of their standard margin practices. However, that does not match up with what the Verge found when talking to some of the investors.

“I can confirm that claims that Robinhood proactively sold customers’ shares outside of our standard margin-related sellouts or options assignment procedures are false,” the spokesperson told The Verge.

But these investors told The Verge they didn’t have options in GameStop or AMC and hadn’t purchased the stocks on margin. They had purchased the shares outright, they said, and were planning to hold onto them.

So we will have to see what evidence the two sides produce for their claims if the court case filed goes forward.

The margin sales make sense, and it was reported that Robinhood obtained more credit last night, before re-opening limited trade. However, it would make less sense to force sell a non-margin account.

 

[Michael]

You are claiming something that is blatantly illegal occurred, that requires evidence. If this is as blatant as you claim, evidence will be easy to come by, otherwise I stand by my claim and feel this belongs in the Conspiracy Theory forum.

Those Hedge Funds have closed their positions and now others have joined in and are shorting this stock. It will go down no matter what people say or do.

The evidence is already in the public domain, and it's as plain as the nose on my face. The brokers only put holds on *buying* (not selling) very specific stocks that hedge funds were *financially desperate* to acquire. They didn't put buy restrictions on *every* stock, just the ones that hedge funds cared about.

So what if those specific stocks or any other stock go down? That's the nature of speculation in stocks. It's par for the course. How do you know that all of the hedge funds have all closed their positions?

 

[VladTheEmailer]

The evidence is already in the public domain, and it's as plain as the nose on my face. The brokers only put holds on *buying* (not selling) very specific stocks that hedge funds were *financially desperate* to acquire. They didn't put buy restrictions on *every* stock, just the ones that hedge funds cared about.

So what if those specific stocks or any other stock go down? That's the nature of speculation in stocks. It's par for the course. How do you know that all of the hedge funds have all closed their positions?

If the evidence was as plain as the nose on you face then, federal agents would be all over them.

If the Hedge funds claimed they had closed all of their positions and had not, Federal agents would be all over them.

What will it take to get you too understand Gamestop is a worthless company? Please read about their fundamentals and explain to me why.

 

[Michael]

If the evidence was as plain as the nose on you face then, federal agents would be all over them.

I'd imagine they *will* be all over them pretty darn soon too.

If the Hedge funds claimed they had closed all of their positions and had not, Federal agents would be all over them.

Which hedge funds made that claim, and how do I verify it?

What will it take to get you too understand Gamestop is a worthless company? Please read about their fundamentals and explain to me why.

I'm not even disputing that in the first place. Based on what I've read on Reddit and in the news, I would suggest that a key reason that *many* people bought that specific stock was to *punish insider trading* practices on Wall street that have gone on unabated for *decades*. It was akin to a stock market revolution, a "peaceful protest" with the express intent of punishing risky and unethical trade practices by major hedge funds. It was a "public statement" for many individuals, not a financially motivated action. Peaceful demonstration is a *right* in our country and stock brokers should not have the ability to collude with hedge funds to remove that ability.

 

[VladTheEmailer]

I'd imagine they *will* be all over them pretty darn soon too.



Which hedge funds made that claim, and how do I verify it?



I'm not even disputing that in the first place. Based on what I've read on Reddit and in the news, I would suggest that a key reason that *many* people bought that specific stock wss to *punish insider trading* practices on Wall street that have gone on unabated for *decades*. It was akin to a stock market revolution, a "peaceful protest" with the express intent of punishing risky and unethical trade practices by major hedge funds. It was a "public statement" for many individuals, not a financially motivated action. Peaceful demonstration is a *right* in our country and stock brokers should not have the ability to collude with hedge funds to remove that ability.

From what you are saying, I see that this has moved into the world of Conspiracy Theories. If you want to keep pushing this narrative, that is fine, I'll keep making money off of this nonsense and feel no remorse.

For anyone else, don't lose your life savings in this mess. I am an options trader with a conscience.

 

[tall73]

If the evidence was as plain as the nose on you face then, federal agents would be all over them.

The SEC already indicated they would look into both the activities of the retail buyers, and the regulated entities.

What are blue sheets? What to know about the data SEC will seek from Robinhood

“The Commission will closely review actions taken by regulated entities that may disadvantage investors or otherwise unduly inhibit their ability to trade certain securities,” the agency said in a statement. “In addition, we will act to protect retail investors when the facts demonstrate abusive or manipulative trading activity that is prohibited by the federal securities laws."


And apparently Robinhood is looking towards the congressional hearings:

Robinhood is looking for a new federal affairs manager ahead of possible Congressional hearings

 

[VladTheEmailer]

The SEC already indicated they would look into both the activities of the retail buyers, and the regulated entities.

What are blue sheets? What to know about the data SEC will seek from Robinhood

“The Commission will closely review actions taken by regulated entities that may disadvantage investors or otherwise unduly inhibit their ability to trade certain securities,” the agency said in a statement. “In addition, we will act to protect retail investors when the facts demonstrate abusive or manipulative trading activity that is prohibited by the federal securities laws."


And apparently Robinhood is looking towards the congressional hearings:

Robinhood is looking for a new federal affairs manager ahead of possible Congressional hearings

Absolutely, they should. Lets figure out how we can encourage more retail investing and protect both sides while, enforcing the law.

My argument is that this is not what many people think it is. The movements in Gamestop required hundreds of millions of dollars, a bunch of activists on Reddit don't have that kind of capital.

I don't understand why people find it so hard to understand that this is funded by professional traders.