WallStreetBets Versus The Crackdown

We mention it again here because the establishment's treatment of BLM is instructive as a counterpoint.

So Much For Corporate Sponsorship

After dismissing former hedge fund manager Mike Novogratz's comparison of the meme stock revolt to BLM in our last post, we wrote the comparison suggested one possible reaction to the meme stock revolt: corporate sponsorship: 

Maybe big Wall Street firms will donate money to an AstroTurfed nonprofit that claims to advocate for small investors.

Another possible resolution is a crackdown. WSB got a taste of that on Wednesday when Discord shut down its server.

We got our answer Thursday. 

From Robinhood To Sheriff Of Nottingham 

On Thursday, Robinhood Financial turned on its users, initially restricting them from buying GameStop (GME),  Nokia, (NOK), BlackBerry (BB), Bed Bath & Beyond (BBBY),  AMC (AMC), and other recent meme stocks. Interactive Brokers followed suit, and some Robinhood users reported that their GME positions were liquidated without their consent. Robinhood later relented, saying it would restart trading in its restricted squeeze stocks on Friday. ZeroHedge helpfully summarized Thursday's craziness, in reverse chronological order: 

Summary of today's trading chaos:

  • GME Stock Rallies After-Hours, Erases Day's Losses.

  • Protesters At NYSE & Robinhood HQ; Angry At Discount Brokerage.

  • Robinhood Draws Down On Credit Lines With Banks.

  • Citadel Securities Denies It Influenced Robhinhood In Restricting Stock Trading In GME.

  • Robinhood Releases Statement Saying Stock Trading In GME Restarts Friday.

  • Robinhood Users Complain Their GME Positions Are Being Sold Without Notice.

  • Elon Musk Agreed With Congresswoman AOC For Investigation In Robinhood Banning Users From Trading GME.

  • Barstool's David Portnoy Starts Twitter Spat With Citadel Point72's Steve Cohen.

  • User Sues Robinhood In Southern District of New York For "Removing GME From Platform."

  • AOC Livid With Robinhood's Decision To Place Trade Restrictions On Users; Calls It "Unacceptable."

  • Robinhood Confirms Users Having Issues With "Equities, Options, And Crypto" Trading.

  • Interactive Brokers Put AMC, BB, EXPR, GME, and KOSS Option Trading Into liquidation.

  • Robinhood Restricts Trading In AMC, BB, BBBY, EXPR, GME, KOSS, NAKD & NOK.

  • TD Ameritrade Placed GME, AMC On Trade Restrictions.

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Texan Hunter 2 months ago Member's comment

You are not victims when you crash the market and screw the poor and middle class and illegally collude to move a stock up. Now you are just as bad as the hedges.