Loading ...Apparently the shorts can make their own rules. This is what happened when a group of mostly young investors caused a short squeeze in some stocks. Despite their computer trading they were losing money covering they’re shorts when targeting and taking down Game stop and the movie cinemas with a short squeeze by a bunch of mostly young people even teens.
So what do they do, instead of cover or hedge, buddy up with the brokers tell them to halt buying. Oh and after they allowed the shares to drop back down they let them buy back a restricted amount. Dictating what they can buy and how much so it doesn’t interfere with the so called hedge funds. Now this coordinated attack with the metals. Who’s to say if the equitys won’t be next, it wouldn’t be the first time.
- Action Taken: Robinhood halted the buying of GME and other “meme stocks” (e.g., AMC, BlackBerry) and suspended options trading, allowing users only to liquidate existing positions.
- Reasons Given: Robinhood cited “unprecedented volatility” and the need to meet increased collateral requirements from clearinghouses, rather than directing users to stop, as CBS News noted.
- Impact: The restriction led to a sharp decrease in the stock price, falling by more than 40%.
- Aftermath: The decision triggered dozens of class-action lawsuits, a U.S. House Committee on Financial Services hearing, and intense public criticism, this CNBC report mentions.
- Resolution: Robinhood began allowing limited buys of these securities the following day, as reported by CNBC.