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A comment on Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop. Parent comment

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by vetinari on Thursday January 28, 2021 @09:15AM (#25941995)
As it was said in previous days: they (the originators of the squeeze) can remain irrational longer, than the other side (hedge fund managers) can remain solvent.
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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by jermaustin1 on Thursday January 28, 2021 @09:21AM (#25942081)
True, but if they sell a massive position and the stock tanks, and a bunch of little guys are left to hold the bag, I could see the SEC definitely investigating it as a pump and dump.
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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by vetinari on Thursday January 28, 2021 @09:38AM (#25942337)
If the bunch of the little guys invested each just few hundred, it is not that a big loss. So if they end up holding the bag, it will be distributed among big crowd, where each member would be missing just a little.

Of course, if someone went above that and invested an amount, where losing it would hurt, that's different.

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