The market closed with GameStop (GME) at $263, down from its close of $346 yesterday. The other stocks that have a lot of short interest (AMC, Blackberry, Nokia) also took hits. Trading was all over the place. Example: AMC. I believe this graph is called the “defibrillation” trading pattern.
Anyway, other developments included Robinhood, the “free” trading app, halting trading on GME, AMC, BB and others, then, unbelievably, liquidating GME positions of Robinhood investors.
It now appears @RobinhoodApp is selling customers’ shares of Reddit stocks “to mitigate the risk” to their portfolios.
This is unbelievable. pic.twitter.com/QjpJLlm1jw
— Sawyer Hackett (@SawyerHackett) January 28, 2021
Robinhood’s major source of revenue is Citadel Capitol, which bailed out Melvin Capital Management, the firm that was shorting GME bigly. There’s a rumor that Citadel reloaded their short sales after Robinhood halted trading.
The whole thing is a fucking stinking shitty mess that makes it pretty obvious that the market manipulators who shorted GME to 130% of float (how the fuck did that happen, btw) don’t like it when someone else tries to use the same tricks. AOC and other squad members, Maxine Waters, Ted Cruz (fuck him) and Don Trump Jr (fuck him double) are all complaining about it on Twitter. This caused AOC to murder Cruz with words on Twitter, which is one of the sweetest parts of this whole debacle. AOC is going on Twitch tonight to discuss the situation.
In conclusion, insanely poor timing on the part of hedge funders to do this when Democrats are in power, so perhaps they’ll get a stronger than usual slap on the wrist.