Citadel allegedly reloaded Shorts on GME before Robinhood put restrictions

https://twitter.com/justinkan/status/1354853920762253315

by vthallam • 5 years ago

165 31 5 years ago

bhouston2• 5 years ago

If I learned anything from watching Billions is that the fix is usually in and it is between the guys with lots and lots of money.

What an amazing inside trade -- knowing or forcing the Robinhood App to restrict the large majority of WallStreetBets from buying, and then shorting the hell out of it.

And they will probably get away with it too, which I also learned from watching Billions.

airstrike• 5 years ago

learned from watching Billions

You know, it's a TV show, not a graduate level course on capital markets.

imstate• 5 years ago

It's not a documentary?

boublepop• 5 years ago

While it’s true that it’s a TV show, one of the aspects that makes it interesting is that the many immoral and self serving actions taken by the two main characters are often inspired by real life controversies or cases of financial crime or political corruption. With an attempt at splitting them into the two camps of “corruption outside the system” and “corruption within the system” personified by the two feuding main characters.

bhouston2• 5 years ago

I think a lot of it is how things are. Of course a lot of it is over the top for dramatic purposes and everything in the show happens to the same set of characters as is needed in a drama... But the fundamentals I think are spot on.

engineeringwoke• 5 years ago

Absolutely not, this is fucking insane. Ken Griffin is going to jail.

jinonoel• 5 years ago

I can't wait for inevitable Billions episode about Gamestop. Dollar Bill is probably going to lose it :)

ackbar03• 5 years ago

There might be another layer to this story. Citadel securities is one of the major market makers that handles orders for Robin hood. I'm guessing they most likely were given a heads up. Granted the hedge fund is separate from the market making business but who knows right

nceqs3• 5 years ago

Yeah even if one POD at Citadel (hedge fund segment) was short GME or increased GME short before Robinhood GME stop there will be many fingers pointed.

vthallam• 5 years ago

If you think about it, they basically stopped buying for the top 4 most mentioned stocks on WSB - https://stonks.news/wsb/summary/

reducesuffering4• 5 years ago

How about confirming your "tip" is true before further inflaming people with rhetoric about jail and warfare?

Lionga• 5 years ago

Justin mentions it is a tip and puts his reputation on the line to get the news out. How about having some balls to put your name on what you believe to be true?

reducesuffering4• 5 years ago

Apparently his reputation is shot. His "news" is disinformation.

https://blog.robinhood.com/news/2021/1/28/an-update-on-marke...

socialist_coder2• 5 years ago

It is class warfare though... Only the elites are allowed to win here. How else can you describe that other than class warfare?

LatteLazy2• 5 years ago

Only if it's true. Right now it's some guy on twitter quoting his unnamed friend...

aneemzic3• 5 years ago

The elites will be fine regardless, they understand what they're doing and will just exit positions with losses if the they determine the risk is too high.

You know who want be fine? The idiot retail investors who actually use robinhood as a broker, lose all their money and can't pay rent because they lost it all gambling on something they didn't understand.

It won't be the elites holding the worthless stock when it inevitable crashes to 0.

wocram• 5 years ago

Citadel should not be able to prevent Robinhood from trading $GME. Robinhood routes trades to many other counterparties, detailed here:

https://cdn.robinhood.com/assets/robinhood/legal/RHS%20SEC%2... from https://robinhood.com/us/en/about/legal/

Arubis• 5 years ago

[Citations needed.]

This would be significant, important news if true. Without confirmation, it's just fanning the flames.

paulmd• 5 years ago

while I have some sympathy for the "letting retail traders coordinate to cause havoc in the market probably isn't the best thing" argument...

lol fuck these guys, this apparently couldn't have happened to nicer people

reducesuffering4• 5 years ago

Justin's "tip" was incorrect and he's spreading disinformation.

"To be clear, this was a risk-management decision, and was not made on the direction of the market makers we route to." - Robinhood[0]

[0]https://blog.robinhood.com/news/2021/1/28/an-update-on-marke...

p_j_w• 5 years ago

Unless there's some transparency and investigation of the matter, it's harder to believe than it is for them to say it.

reducesuffering4• 5 years ago

There will be investigation undoubtedly. So who's got more skin in the game?

Is it Robinhood with an official press release stating their decision didn't come from their market-maker, Citadel, and if this isn't true would face repercussions in court?

Or is it Justin, who like the rest of twitter-verse, if wrong, faces zero repercussions?

Citadel allegedly reloaded Shorts on GME before Robinhood put restrictions

Related Stories