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

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by JumpCrisscross on Thursday January 28, 2021 @02:24PM (#25947528)

> There isn't enough stock for them to close their position

Tens of billions of dollars of GameStop have been bought and sold over the past few days. If you can buy GameStop to go long, you can buy it to cover a short.

Note that there isn't a limit on rehypothecation. A share sold short by Bob can be used by Anna to cover her pre-existing short.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by d1sxeyes on Thursday January 28, 2021 @05:03PM (#25950037)

I am not highly knowledgeable on this, but... even if it's the same share that Anna sold to Bob short in the first place?

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by nostrademons on Thursday January 28, 2021 @05:51PM (#25950671)

Yes, even if it's the same share that Anna sold to Bob short in the first place. That's how you get short interest > 100%. The market doesn't care, it only cares that a share was sold from Anna to Bob and then from Bob to Anna. The individual shares are completely fungible. (They don't actually exist, they're just numbers in a contract.)

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by d1sxeyes on Friday January 29, 2021 @04:05AM (#25955460)

Wow. That's incredible.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by ric2b on Friday January 29, 2021 @08:53AM (#25957202)

> Tens of billions of dollars of GameStop have been bought and sold over the past few days.

Yes, at prices that are several multiples above the price they shorted at.

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