Robinhood Reportedly Selling People’s GME Positions Without Warning, Investors Sue

a reply to: JBurns

This can't continue.

I know nothing about stocks, but I have always heard the cautionary words, 'what goes up, must come down", so I am hoping people that are investing for a cause, are investing money that they can afford to lose.

People that are gambling the house, car, and school savings, may find themselves in as much of a pickle as the people they are trying to bring down.

I also heard there are some big companies and very wealthy people riding this wave, and are actually the ones that are steering the boat. I fear it may not end well for a lot of people. The wealthy can recover, I am not so sure a lot of common folk will fare as well.

a reply to: SleeperHasAwakened

That being the case, I would temper expectations that if everyone simply hops platforms from RH to Fidelity, the targeted short squeezing won't get locked down at Fidelity too at some point. If Wall Street wants to freeze trading on specific securities to protect their own, they will do this with impunity.

Well you say that but, I did a little digging the past 3 days, not only does fidelity own a 9.75% stake in GME shares through one of its own funds. It also owns its own clearing house too. They are about as independent as they could get from the rest of Wall Street...they're even based in Boston. Not saying its not possible I guess...but very very unlikely as of yet.

a reply to: NightSkyeB4Dawn

I don't know how they know the hedge funds haven't orchestrated the whole thing and bought a bunch of shares along with them, selling them to them at an inflated price until they've sold them all, and that's when the price will start to fall causing the redditors to sell en masse dropping the price for the hedge funds to buy up for their shorts.

Sorry for the massive run on sentence.

a reply to: RickyD

True, but at the end of the day, the exchanges and major broker-dealers (JP Morgan, Goldman Sachs) run the show. If they want trading of a security halted, it's going to happen.

My belief is that Fidelity's client base is much more sophisticated than RobinHood's; their customers are experienced investors, and they're not running out and buying a GME just to stick it to hedge funds. Also, Fidelity is an established financial entity over many years, and they probably get a little more latitude from Wall Street when it comes to things like this. However, if we see a mass customer exodus from RH to Fidelity, and the targeting of short positions continue, I wouldn't bet against Fidelity caving in and freezing trades, if WS leans on them.

I tried to convince a friend to move off of RH to Fidelity, and he was reluctant due to incurring trading fees. I think like anything else, you get what you pay for. I know that RH has had some growing pains with their trading platform and software services, and now add to that the GME debacle. When my friend told me about RH and tried to convince me to use them, I said "I'm good; I'll stick with Fidelity". Additionally, RH seems to have needed to tap into extended lines of credit from their investors, probably to ensure they had enough liquidity to service the huge influx of trades for GME and similar securities.

Time will tell. I am glad I steered clear of RH.

originally posted by: MotherMayEye
a reply to: NightSkyeB4Dawn

I don't know how they know the hedge funds haven't orchestrated the whole thing and bought a bunch of shares along with them, selling them to them at an inflated price until they've sold them all, and that's when the price will start to fall causing the redditors to sell en masse dropping the price for the hedge funds to buy up for their shorts.

Sorry for the massive run on sentence.

Yeah, no. We’re in charge here, not the hedge funds. If you want to know who is calling the shots just watch CNBC and the cover stories they’ve been running. They are scared, very scared. The mother of short squeezes is about to play out in front of our own eyes. Could start Monday, I’m holding just 10 measly shares, but I’m trying to get 10 more at open on Monday.

a reply to: macaronicaesar

But is there anything that would have prevented the hedge funds from buying shares when WSB started buying them and selling them to retail traders at the current high price?

Also, who was the one that brought attention to the shorting to WSB? What's his story?

Figured we’d play along and bought a share at $313. My wife has taken an interest in stocks over the last year and was using Robinhood, she transferred everything to Ameritrade today. Nothing crazy, just a few hundred bucks spread out. After reading through WSB for a few minutes and seeing that people are dead set on holding, I figured ‘why not?’.

Depending on what it’s looking like at the end of this week, I might buy some more.

Man, I can definitely see the appeal with this stuff and I’m looking forward to really investing some time into learning more about stocks and the market.

a reply to: loam

The 2021 Boston Tea Party was everyday investors bleeding hedge funds for a tidy profit. Yet the ruling class had no intention letting people outsmarting them at their own game. Ignoring peaceful and legal protests is the downfall of the ruling class behind the GFC, and is responsible for the conditions that permitted Trump's political rise.

Historically, folly, vested self-interests and desire for power overwhelm rational courses of action. From the American Revolution to South Vietnam's downfall, there is no end to the madness. The rising tide of the strange mix of Mugabe style dictatorship and "big money" special interests might engineer a roller coaster death ride.

A crackdown on Joe Blogs investors will drive the "smash Wall St" movement underground in the shorter term. Also, there is the possibility that alternative online stock markets are established. These stock markets might raise funds required to target the ruling class or serve as a way for firms to raise capital away from "big tech" censorship and the eyes of the U.S. government.

a reply to: projectvxn

Venture capitalists and ethical hedge fund manager don't belong among the "Wall st" class. In all likelihood, the Biden admin is looking to crack down on everyday investors from beating the cesspool at their rigged game. Underground alternative online stock markets offer a possible window into the future. The implications of removing capital from traditional stock markets open a massive can of worms. Undoubtedly, anybody who defies the ruling class will have violent mobs sent into neighbourhoods, minus the presence of law enforcement. Individuals will face nonsensical smears from left-wing propaganda outlets.

The people who fell for the Russia Gate hoax and who don't see the dangers in political radicalisation enable the destruction of their country.

Maybe Silver is the next Gamestop...check it out
gab.com...

Got to wonder the angle/motivation of such a post, are they daring us, warning us, or planning to buy silver..

I work for a bank whose name I won't disclose. You fools. You have no idea what you're doing. No idea how serious this is. this isn't a simple get rich quick scheme. If there's a short squeeze on silver, all the banks will fail, Every single one. Eight of the them are short silver and they would have to pay trillions to cover shorts if silver got to triple digits ..... America will be destroyed

Probably harder to move silver than Gamestop shares, but who knows. Interesting times.

more links
gab.com...
gab.com...
gab.com...
gab.com...

Fidelity sold my GME shares on Friday as well. It worked out for me (so far) as they sold them at $410 a share Friday morning.

I didn't get a nice letter admitting fraud about it, just the sell message in my notifications. Also before anyone says I may have been mistaken about setting a sell or something. The day before (Thursday) I was trying to set a limit sell at $1,000 a share but fidelity wouldn't let me with a big warning box that I was setting a limit sell too far above current price. I tried a couple times and just gave up letting fate take the wheel.

originally posted by: xpert11
a reply to: projectvxn

Venture capitalists and ethical hedge fund manager don't belong among the "Wall st" class. In all likelihood, the Biden admin is looking to crack down on everyday investors from beating the cesspool at their rigged game. Underground alternative online stock markets offer a possible window into the future. The implications of removing capital from traditional stock markets open a massive can of worms. Undoubtedly, anybody who defies the ruling class will have violent mobs sent into neighbourhoods, minus the presence of law enforcement. Individuals will face nonsensical smears from left-wing propaganda outlets.

The people who fell for the Russia Gate hoax and who don't see the dangers in political radicalisation enable the destruction of their country.

This for sure, but it wouldn’t change with a GOP led government. They are all controlled by their puppet masters, Trump included. There will likely be a crackdown, but let’s hope it’s not before we destroy this hedge fund.

We simply like this stock. It’s another reason why people need to get into crypto and get off these centralized exchanges where they can’t currently pull these shenanigans. Melvin is bleeding money daily and they have to cover soon. Whether they continue to manipulate the market and recuperate some of their losses doesn’t matter. They are in deep # as long as we hold. Set sell limits so your shares can’t be moved.

I still suspect this was not a pump and dump only by the hedge funds.

I believe it may have been a pump and dump and then a hostile takeover by another big tech company when the GameStop shares bottomed out.

originally posted by: NightSkyeB4Dawn
a reply to: JBurns

This can't continue.

I know nothing about stocks, but I have always heard the cautionary words, 'what goes up, must come down", so I am hoping people that are investing for a cause, are investing money that they can afford to lose.

People that are gambling the house, car, and school savings, may find themselves in as much of a pickle as the people they are trying to bring down.

I also heard there are some big companies and very wealthy people riding this wave, and are actually the ones that are steering the boat. I fear it may not end well for a lot of people. The wealthy can recover, I am not so sure a lot of common folk will fare as well.

Buying more in the am. Can’t wait.

originally posted by: SleeperHasAwakened
That being the case, I would temper expectations that if everyone simply hops platforms from RH to Fidelity, the targeted short squeezing won't get locked down at Fidelity too at some point. If Wall Street wants to freeze trading on specific securities to protect their own, they will do this with impunity. The head of the NASDAQ came right out and said this very thing, IIRC.

That being said...whose next?? AMC? I might hop in on this next round, got some coin to invest and I have no compunctions about separating hedge funds from their money.

The sooner you buy the shorted stocks, the more you'll have before they restrict trading. Trade Zero said that they would keep trading GME, despite intense pressure to stop.

GME is still the most shorted stock, AMC is now also high. You can see the interest charged for shorting stock at IBorrowDesk. The higher the interest rate, the more shorted the stock is. On January 27, the latest fees were the following:

GME 32.8%
AMC 21.9%
SPCE 3.2%
FIZZ 1.2%
AG 0.9%.

Get as much as you can of the shorted stocks while you can, if they restrict trading everywhere, then buy physical silver.

This is hilarious.

Nobody has recognized what is really happening here!

For years the Left has blamed everything on the "Evil Banksters" or the "Evil Wall Street".

A group decides to screw them and the Leftists in power are protecting them.

Ever wonder how Bill Clinton, Hilary Clinton, Obama and others make millions of dollars in speaking fees from Hedge Funds, Banks and other financial groups? Now you see it.

If things were the way that the Left wats you to see them, financial groups and Big Tech should have been giving millions to have kept Trump in office. No they gave to Biden.

Wake up people! You are being scammed.

Wow.

I have never seen ATS so united over something, it is refreshing after all the madness lately.

I looked into Robinhood sometime ago, they seemed ok but I was warned by my brother about them. I decided to not use them, despite their 'free stock' upon sign up. I know several others who use them and apparently they get a 'free' stock or something for signing up other people.

Glad I stayed away. There are far better platforms out there.

I've heard there are plans to keep doing this with other stocks.

a reply to: JIMC5499

Had Trump been in office the same thing would have happened. Both parties are owned by big money groups.

I have heard third hand about a local politician who was gaining popularity and running for a state legislature seat, he was pulled aside by those interests and gave him the 'with us or against us' talk, and if you are against we will destroy your reputation.

a reply to: jrod

Couldn't prove it by the last election.

a reply to: loam

And selling counterfeit shares. Like in " The Producers" . Sell more than you have and run the price down so nobody knows they've been had. Unless it goes up and prison beckons....