Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by Kranar on Thursday January 28, 2021 @12:27PM (#25945241)

There is a saying that if you're not paying for a product, you are the product.

Robinhood's real customer, the paying customer isn't the users of its app, which they offer out for free. It's actual paying customers are HFT firms, and specifically Citadel, the same Citadel that on Monday bailed out Melvin Capital with a 3 billion dollar loan.

Wouldn't surprise me one bit to find out Citadel called up Robinhood and said either shut this GME trading down or they're pulling the plug.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by Aunche on Thursday January 28, 2021 @12:48PM (#25945604)

Melvin Capital closed out their short positions, so what exactly does Citadel stand to gain here?

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by Kranar on Thursday January 28, 2021 @01:10PM (#25946109)

I do admit to speculating here, but I am speculating that Melvin Capital did not close out their short position. Their claim to CNBC leaves a lot of room for interpretation, misunderstanding, and it's an informal statement.

We won't know what Melvin Capital did until they submit their next 13F filing.

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