Yep. When Melvin and Citron go out of business the brokers are now the ones short the shares. They can take every penny from both of those firms and won't be able to cover.

The little guy gets fucked again. Lets hope Melvin and Citron at least go bankrupt.



God since options can't move for another 20 minutes my account is showing -66%. This is hilarious. Robinhood's UI is such dog shit.



BB back down to 18. I'm actually pretty excited lol. I can buy back my options on the cheap. I plan on holding my shares for at least 2 years. I am finally understanding what Buffett means when he says he'd gladly lose half his fortune if every one of his stocks went down 50%.

This post was edited by Thor123422 on Jan 28 2021 08:12am

Good perspective. Apparently shorting != unlimited risk anymore, only until broker assumes part of the risk. Then they’ll intervene.

This post was edited by obisent on Jan 28 2021 08:15am

This had crossed my mind, but I thought there was some backend agreement where the broker could basically force liquidation of the borrowing party to cover if this happened.

Apparently I was wrong lol

SEC Lawyer: Your honor, this is a classic pump and dump scam. Clear market manipulation.

Defense: Your honor, I would like to submit into evidence thirty-thousand diamond hands reddit posts.

Next question is if this kind of shit is legal. If the brokers have a vested interest in a position and because of that close buys on a stock, wouldn't that qualify as some sort of crime/fraud?

If the shorts can't clear (if no one sells the stocks), then it falls next to the brokers, then to the banks.

That's a really hard question to answer. It depends on the SEC, and what the user agreement is. A class action for losses is absolutely on the table over this kind of thing, especially with the tens of millions in individual losses that's sure to come from it, but that will require like a decade to litigate.

huh?? of course its not fraud/crime. the FEDS themselves told them to close buys!! no one believes that “excess volatility” excuse they put up

Gme 278

Ty fidelity for not being a piece of shit

Robinhood is such trash.

Since BB can't be traded the margin maintenance basically went to 100%, which means if it closes low it basically fucks my account.

Out at $19, but all gains wiped out by having to rebuy my calls in this insane market.

Fuck you RobinHood.