There was a very interesting post about this on Twitter today. Apparently, the RobinHood trading platform allows the Citadel hedge fund to use HFT algorithms to lead every trade on their platform by a few milliseconds allowing them to snipe in front of pretty much any trade they want to. Guess who is backing the main short sellers who initially got into the position against Gamestop? Not only are they sniping trades on the up, they are also backing the short sell when it comes back down. On top of that, they get a small cut from general RH trades and are able to front run them whenever they want. God damn it must be nice to be a modern day robber baron.
I’d like to see that validated. That’s nuts if true. Anyone using RH after something as dumb as their leap year bug is crazy anyway.
https://seekingalpha.com/article/42...illennial-customers-to-high-frequency-traders This is about Robinhood allowing HFT to front run trades. https://finance.yahoo.com/news/gamestop-short-seller-melvin-gets-030105922.html This is the article about Citadel giving money to the short seller. https://www.institutionalinvestor.c...e-App-and-Others-Have-Been-Doing-It-for-Years Citadel being allowed to front run trades.
Glad this topic stayed in the serious thread because they're seriously fucking up wall street, and this thread does a good job of showing why it's personal for them I really picked an interesting time to start being at least peripherally aware of stocks. Some internet idiots (sorry, autists) who are in it for the lulz are causing real world issues for people with millions of dollars and ivy league degrees. This is no small thing.
I personally think it's hilarious when a hedge fund goes short, then runs out of money, borrows $2 billion, which goes "poof!" in a day, and then has to declare bankruptcy. It's just institutionalized gambling where the rules are all rigged and you never really got to play unless you were on the in crowd. It's nice to see the Bad News Bears of "investing" throwing their money away to burn a few of them down.
Good. Retail traders got completely fucked during the dot com bubble. Let it go the other way for once.
oh yeah I’m not complaining. I think this is quite hilarious, and again I don’t know enough to understand how truly fucked everyone is getting. It’s still awesome though. I would love to be a fly on the wall at GameStop board of directors or whatever. I’m sure they’re just laughing at what’s going on
They’re currently discussing this on WFAN, the sports radio station out of NY City. Apparently this has entered the broader consciousness. Supposedly Koss (headphones) is the next target. Blockbusters Twitter account has weighed in as well.
Huh. And here I thought that buying back in at $147 was never going to pay off... as it tops $300. WTF.