Re:We Are Preparing a Class Action Lawsuit Against Robinhood
by zarkov99 on Thursday January 28, 2021 @02:06PM
(#25947232)
I am sorry, can you explain again why MM's would only pull out of selling GME? Because RH only stopped people from buying GME.
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Re:We Are Preparing a Class Action Lawsuit Against Robinhood
by JumpCrisscross on Thursday January 28, 2021 @02:08PM
(#25947260)
> why MM's would only pull out of selling GME? Because RH was still allowing buys.
Market makers typically would pull out of the name, not out of one side.
My guess is Robinhood didn't want people opening new positions--long or short--in the name. Blocking people from selling an asset you sold them raises all sorts of issues. But denying them the ability to enter into a new position through your services is on more-stable ground.