Re:Class Action Lawsuit Filed Against Robinhood in the State...
by KMag on Thursday January 28, 2021 @04:14PM
(#25949315)
> But this could happen with literally any stock that crashes.
You're leaving the probability of a crash out of your analysis. If the value proposition of GME is based on the short squeeze (hypothetically speaking... I'm not saying it is or isn't), what happens when either all of the shorts capitulate, or the price reverses direction? You're likely to see liquidity dry up.
Don't pretend like GME is behaving just like all of the other stocks today. There are legitimate reasons for RH to be concerned about GME in ways that don't make sense for most other names.
You're leaving the probability of a crash out of your analysis. If the value proposition of GME is based on the short squeeze (hypothetically speaking... I'm not saying it is or isn't), what happens when either all of the shorts capitulate, or the price reverses direction? You're likely to see liquidity dry up.
Don't pretend like GME is behaving just like all of the other stocks today. There are legitimate reasons for RH to be concerned about GME in ways that don't make sense for most other names.