Discussion Game Stop Stock Short Squeeze

[fskimospy]

Here's how Robinhood is raking in record cash on customer trades — despite making it free

Robinhood is raking in more money than ever on customer trades as new investors flood the stock market during the pandemic.

www.cnbc.com

Citadel is not paying Robinhood to execute trades for no reason. I am sure it's structured in a legal way, but the effect is the same, they skim off those free trades and pay Robinhood for the privilege. So when Citadel, which is the source of RH's revenue is short and RH's users who don't pay commissions are long a stock, RH is going to serve its actual paying customer.

If citadel is trading based on its knowledge of yet to be executed customer order information that is not public then they are committing a crime, and there are no exceptions.

Pay for order flow is actually a fairly common thing, but not so people can front run orders.

 

[theeedude]

If citadel is trading based on its knowledge of yet to be executed customer order information that is not public then they are committing a crime, and there are no exceptions.

Pay for order flow is actually a fairly common thing, but not so people can front run orders.

I am sure they structure it legally, but effect is they are skimming money of Robinhood users, and paying Robinhood for it. They wouldn't pay for order flow if there wasn't an arbitrage opportunity for them in it at the expense of the Robinhood users.

 

[Homerboy]

Think the rich are out of touch?

https://twitter.com/x/status/1354854088509452290

 

[fskimospy]

I am sure they structure it legally, but effect is they are skimming money of Robinhood users, and paying Robinhood for it. They wouldn't pay for order flow if there wasn't an arbitrage opportunity for them in it at the expense of the Robinhood users.

All I’m saying is if they are doing that their entire business model is criminal. There is no legal way to use non-public knowledge of incoming orders from your customers to jump in front and skim money.

What you’re referring to is payment for order flow.

Payment for order flow - Wikipedia

en.m.wikipedia.org

 

[conehead433]

It's sad to see the brokerage firms acting in collusion to stop the trading of a particular stock to help protect the hedge funds from basically losing everything they have because they were stupid. And trying to get the government to intervene because there is market manipulation going on. That's what market makers do all the time, and it's fun to watch something like this. So if buying/selling is restricted that leaves the hedge funds free reign to sit and trade shares among each other at continually lower bids to drive the price down. If the SEC gets involved I only want to see one outcome - the Hedge funds have to cover their position.

 

[theeedude]

It's sad to see the brokerage firms acting in collusion to stop the trading of a particular stock to help protect the hedge funds from basically losing everything they have because they were stupid. And trying to get the government to intervene because there is market manipulation going on. That's what market makers do all the time, and it's fun to watch something like this. So if buying/selling is restricted that leaves the hedge funds free reign to sit and trade shares among each other at continually lower bids to drive the price down. If the SEC gets involved I only want to see one outcome - the Hedge funds have to cover their position.

Hedge funds are allowed to buy, sell, short, trade options, do whatever they want with GME. Robinhood users are allowed to only sell GME. Conveniently, that makes money for Robinhood's biggest customer, Citadel.

 

[sdifox]

It's sad to see the brokerage firms acting in collusion to stop the trading of a particular stock to help protect the hedge funds from basically losing everything they have because they were stupid. And trying to get the government to intervene because there is market manipulation going on. That's what market makers do all the time, and it's fun to watch something like this. So if buying/selling is restricted that leaves the hedge funds free reign to sit and trade shares among each other at continually lower bids to drive the price down. If the SEC gets involved I only want to see one outcome - the Hedge funds have to cover their position.

Like I said in the other thread, RICO the fuckers.

 

[Zorba]

In the last hour it went from ~$400, down to $120, and is now ~$250.

Amazing how fast a stock can crater when brokerages illegally cartel to prevent purchasing.

I hope each of these brokerages get sued for losses. What gives them the right to block purchases of a public asset on public market that they do business with?

 

[Roger Wilco]

Does anyone else find it amusing that Gamestop's slogan is "Power to the Players?"

 

[fskimospy]

Like I said in the other thread, RICO the fuckers.

Sadly RICO would not be possible because the primary purpose of the organization isn’t crime, but it sure sounds like they are opening themselves up to legal problems.

 

[theeedude]

Does anyone else find it amusing that Gamestop's slogan is "Power to the Players?"

Not as amusing as Robinhood being named Robinhood

 

[theeedude]

All I’m saying is if they are doing that their entire business model is criminal. There is no legal way to use non-public knowledge of incoming orders from your customers to jump in front and skim money.

What you’re referring to is payment for order flow.

Payment for order flow - Wikipedia

en.m.wikipedia.org

"Payment for order flow was pioneered by Bernard Madoff."
Good Housekeeping Seal of Approval right there

 

[hal2kilo]

Think the rich are out of touch?

https://twitter.com/x/status/1354854088509452290

Then put your money where you mouth is big guy.

 

[fskimospy]

"Payment for order flow was pioneered by Bernard Madoff."
Good Housekeeping Seal of Approval right there

Haha definitely.

Ironically, this might have helped him hide his fraud longer because while lots of people thought he was up to something shady they thought he was front running due to his data on order flow.

 

[zinfamous]

This is a concerted effort by the brokerages... That is called RICO violation. Biden should have Berney head an investigation into this.

Lizzie

 

[[DHT]Osiris]

Sadly RICO would not be possible because the primary purpose of the organization isn’t crime

It might be arguable in court that the primary purpose of a hedge fund is to commit crime, given their track record.

 

[sdifox]

Sadly RICO would not be possible because the primary purpose of the organization isn’t crime, but it sure sounds like they are opening themselves up to legal problems.

If LAPD and FIFA can be RICOed, so can these fuckers.

 

[WelshBloke]

In the last hour it went from ~$400, down to $120, and is now ~$250.

I'm not sure that you can get anything meaningful from the share price apart from this is hilarious.

 

[Fenixgoon]

View attachment 38727

I'm not sure that you can get anything meaningful from the share price apart from this is hilarious.

This is my take as well. I'm watching the ticker bounce all over just for the lulz. I have no GME stock (and no plan to join this game)

 

[conehead433]

I wish I owned this stock. I think I saw where options expire on 20 million shorted shares tomorrow. The hedge funds have to cover by 4pm as they do not have a choice.

 

[Fenixgoon]

I wish I owned this stock. I think I saw where options expire on 20 million shorted shares tomorrow. The hedge funds have to cover by 4pm as they do not have a choice.

I just saw a link indicating short losses are estimated at $70B right now

Losses on short positions in U.S. firms top $70 billion - Ortex data

Short-sellers are sitting on estimated losses of $70.87 billion from their short positions in U.S. companies so far this year, data from financial data analytics firm Ortex showed on Thursday.

www.reuters.com

 

[WelshBloke]

This is my take as well. I'm watching the ticker bounce all over just for the lulz. I have no GME stock (and no plan to join this game)

I just have £300 in it just to make it more fun. I put that in with the complete understanding that I was basically burning it.
Its pretty difficult to actually buy the stock right now do just sit back and enjoy the show!

 

[theeedude]

How long are they going to keep blocking Nokia stock? That thing is deep value for a tech stock.

 

[Wreckem]

The funny thing is the real winners of this are the large share holders and institutional investors who aren’t shorters. These people thank your for their free billions. At some point they will sell to realize their astronomical gains and when they do it’s going to be an even wilder ride.

 

[sdifox]

The funny thing is the real winners of this are the large share holders and institutional investors who aren’t shorters. These people thank your for their free billions. At some point they will sell to realize their astronomical gains and when they do it’s going to be an even wilder ride.

I doubt they like short traders.