Stock Market - Market Manipulation Exposed Worldwide by WallStreetBets!

bery_451

The small guys that are retail investors at wallstreetbets reddit forum decided to take on the big greedy bankers and hedge funds/institutional investors on wall street.

The robinhood app, only available in the US, which is similar to the Trading212 app we use in UK, did not allow the retail investors to trade on the app to protect the big institutional investors from losing further money even though the institutional investors are not even robinhood app customers!

So this is clearly blatant corruption and market manipulation where the app favour the big rich whales that is institutional investors over us small retail investors

This scandal is more worse than then Enron scandal.

#Occupy wallstreet is nothing compared to this!


 

Thrugelmir

Robinhood makes it's money from institutional not retail investors. Robinhood doesn't run on fumes but hard cash. It's app is intentionally built to manipulate novice investors. There's no such thing as a free lunch. In the US the culture is one where the winner takes all. 

EthicsGradient

What actually happened with buys being temporarily suspended by some brokers, including robinhood:

Short explanation of why having lots of customers buying GameStop put Robinhood into a cash crunch: Because stock trades don't settle for 2 days, brokerages are required to post capital to cover the risk that a clearinghouse will fail in that period.
The more volatile the underlying stocks are, the more capital you have to post. GME's (and AMC's) stock prices have become incredibly volatile, which meant Robinhood had to put up more of its own money (and it has to use its own money, not client money).
...
The culprit behind the GameStop buying ban, in other words, seems not to have been a sinister hedge-fund cabal. Instead, disappointing as it is from a dramatic perspective, the culprit seems to have been government- and industry-imposed capital requirements.

https://twitter.com/JamesSurowiecki/status/1355039001539981312

Longer explanation: https://marginalrevolution.com/marginalrevolution/2021/01/why-was-share-trading-restricted.html

barnstar2077

You say market manipulation and corruption has stopped the retail investors, but what would you call millions of retail investors colluding on the internet?  Isn't that market manipulation?

barnstar2077

Also, this is just a pump and dump scheme.  The first investors who buy in before the rest are convinced to come on board to fight the good fight will make a lot of money, at the expense of the last few chumps who buy in before the instigators decide it is time to sell.

Albermarle

The small guys that are retail investors at wallstreetbets reddit forum decided to take on the big greedy bankers

I think when this saga is over it will be clear the retail investors have been manipulated by some dodgy characters using this Reddit forum , who have pumped the price up on the back of some spurious campaign against Wall St . Then cashed in at the top and run . For sure there will be a lot of burnt fingers on both sides.

Will_Do

I find it hard to get outraged about. The majority of the WSB participants were being manipulated themselves and many of them will get burned if they haven't been already. They joined a conspiracy to create a massive bubble and bubbles always burst, they never slowly deflate. A large number of the WSBers won't be able to get out fast enough to avoid huge losses.

IvanOpinion

So we have a bunch of investors trying to manipulate the markets whining about market manipulation?  One of the big differences that these social media types are only interested in their short term 'give establishment a two fingered gesture' while totally ignoring the long term impacts of their mani0pulation such as possible job losses and the impact to their own pensions.

This Reddit "ponzi scheme" (which is basically what it will turn into) is nothing more than a few manipulating the many.

soulsaver

Will_Do said:

 A large number of the WSBers won't be able to get out fast enough to avoid huge losses.

Well they won't be able to when the platform has locked them out....

Will_Do

soulsaver said:

Will_Do said:

 A large number of the WSBers won't be able to get out fast enough to avoid huge losses.

Well they won't be able to when the platform has locked them out....

They haven't been locked out from selling stock they already hold. Regardless of how their fingers end up getting burnt though, they will learn a valuable lesson on the follies of get-rich-quick schemes.

[Deleted User]

Reddit sub has lots of subscribers, they aren't all investors and they aren't all in GME or AMC etc

Like it or not, by inflating the price all they are doing is screwing the short sellers who have to buy at some point when their positions end - hence why holding shares is their current run. Plenty of people with small investments on the sub have sold their shares and cashed out.