Posts

This Is Exactly What Decentralized Finances Was Invented To Stop: Robinhood Limits GameStop Stock Trading

avatar of @reonarudo
25
@reonarudo
·
·
0 views
·
1 min read

The GameStop stock had been heavily shorted by institutional investors who were "caught with their dick in the cookie jar" by Redditors on wallstreetbets subreddit with millions of subscribers who had discovered the massive open short positions covering 140% of the floating (= freely traded on the market) stocks.

An opportunity for a gigantic short squeeze was opened which sent the GameStop stock mooning, which cost the greedy institutionals who were in the process of driving the company to the ground billions of dollars in losses as they had to buy back to return the stocks they had short sold.

An epic media propaganda campaign was launched against the millions of small retail investors who made bank on the back of the greedy psychopaths who run the large hedge funds that were in the process of destroying GameStop and to make money off of that.

A particularly big loser was a fund called Melvin Capital. Now Robinhood, a popular stock trading app has stopped allowing traders to buy the GameStop stock. Selling is allowed. This will, of course, cause the stock price to go down and prevent Melvin Capital among other funds to lose less.

Citadel LLC is a major investor in Melvin Capital. Citadel Securities has a large stake in Robinhood.

Brilliant!

Centralization in the finance industry has helped a tiny elite gobble up untold trillions of dollars in wealth over the decades and centuries while running circles around regulators. Decentralized finance can level the playing field and end the blatant hypocrisy.

Posted Using LeoFinance Beta