A different view on why GME was restricted in some brokerages

[JSOP]

I know I'd be pissed if it were me.
I mean off the charts pissed.
In a big way.
I guess we'll see what happens.

Especially that while brokers were blocking trading of retail investors there were 10K blocks of buy orders of GME showing on the T&S. And if those 10K blocks were bought with margin in RH and the investors who had cash to buy were refused execution then that's inequitable treatment among clients an that's gross violation of fiduciary duties.

RH better have good lawyers. I smell lawsuits...

 

[zghorner]

I know I'd be pissed if it were me.
I mean off the charts pissed.
In a big way.
I guess we'll see what happens.

I think this is part of the problem. Most of “we the people” are brushing this off because they didn’t have any skin in the game.

We out traded their asses for once in a game already rigged heavily in their favor...without doing anything that they haven’t been doing for decades...centuries even. so they literally tied our hands behind our backs at the beginning of the fifth round in the greatest boxing match in financial history...and are still currently losing.

If you are heavily short and the price goes against you...you close. Fundamentals don’t matter. Conditions don’t matter. The market just proved you had a losing hand by going deep red against you. Instead of exiting the position...taking it on the chin like a man and moving on...they stayed in their positions and added capital to cover the margin call. They traded like bums and knew it so they coordinated a short bear attack while eliminating the bulls’ ability to hold their ground. They cheated. It’s fucked.

 

[vanzandt]

I think this is part of the problem. Most of “we the people” are brushing this off because they didn’t have any skin in the game.

We out traded their asses for once in a game already rigged heavily in their favor...without doing anything that they haven’t been doing for decades...centuries even. so they literally tied our hands behind our backs at the beginning of the fifth round in the greatest boxing match in financial history...and are still currently losing.

If you are heavily short and the price goes against you...you close. Fundamentals don’t matter. Conditions don’t matter. The market just proved you had a losing hand by going deep red against you. Instead of exiting the position...taking it on the chin like a man and moving on...they stayed in their positions and added capital to cover the margin call. They traded like bums and knew it so they coordinated a short bear attack while eliminating the bulls’ ability to hold their ground. They cheated. It’s fucked.

I'd give ya 3 like if i could on that.
spot on.

 

[newwurldmn]

You are wrong. And you will see all the lawsuits will be thrown out. Extraordinary events where robinhood’s clearing firms refused to do business.

second, it will be impossible to prove damages as the stock was moving wildly. Damages have to be clear and concrete - not potential profit.

Trust me, I am right. If an investor who in their sound mind and body and had enough means to buy shares of GME or AMC or any of the stocks at the prevailing price and RH refused to execute their bona fide orders, and if that investor takes RH to court for breach of contract, failure of fiduciary duties, negligence, that POS disclaimer of RH will NOT stand a chance. And RH will be liable to pay any damages that that investor had suffered due to RH's arbitrary refusal in executing bona fide orders and punitive damages.

Because what RH did is in direct impediment of an orderly market operation and a break down of an entire financial industry and cannot set precedence. Otherwise from now on, any brokers can just refuse to execute your order or execute any orders to take money from your account at their "discretion" and you would have no control over your own money.

 

[Overnight]

The hell is all this talk about how bad it is that trading was restricted on some instruments? Who the hell cares? Who is really whining and who is affected by it?

There was a time some months ago where my broker went liquidation-only on live cattle. And this is an instrument that has breakers that actually WORK! I was scratching my head on that one. But, oh well, no big deal.

If you are not over-levered, you have nothing to worry about on the OMG freak-out overnight session which destroys civilizations. If people, and hedge funds, would stop over-levering, this problem would not persist, and would not fuck up the entire world's balance sheet.

 

[JSOP]

I think this is part of the problem. Most of “we the people” are brushing this off because they didn’t have any skin in the game.

We out traded their asses for once in a game already rigged heavily in their favor...without doing anything that they haven’t been doing for decades...centuries even. so they literally tied our hands behind our backs at the beginning of the fifth round in the greatest boxing match in financial history...and are still currently losing.

If you are heavily short and the price goes against you...you close. Fundamentals don’t matter. Conditions don’t matter. The market just proved you had a losing hand by going deep red against you. Instead of exiting the position...taking it on the chin like a man and moving on...they stayed in their positions and added capital to cover the margin call. They traded like bums and knew it so they coordinated a short bear attack while eliminating the bulls’ ability to hold their ground. They cheated. It’s fucked.

Yeah I agree. They basically broke all the cardinal rules that we traders always had to adhere to survive:

1. Maximize your risk/reward ratio of at least 1:2. It was stupid of them to short at $4 to begin with no hedging for a relatively tiny reward but potentially facing huge risk when the price moves against them.

And then when the price was moving against them, they broke Rule

2. Cut your losses early and let winners ride. They should've covered right away but they didn't. Like you said, they waited and waited, and even added capital which broke Rule

3. Never add to your losses. Losses are there for a reason and adding to your losses would just make it worse.

Overall they just got too cocky. They think they are invincible. They think they've got a poor company that fell out of times in the bag and they are going to walk away a winner for sure just like all the other times. And since all the rules are all written in their favour they think nobody, the least of all some little traders who trade from the basement can touch them. That's what money can do to a person. It makes one forget who they are. They are just bad traders who got lucky a few times.

 

[JSOP]

You are wrong. And you will see all the lawsuits will be thrown out. Extraordinary events where robinhood’s clearing firms refused to do business.

second, it will be impossible to prove damages as the stock was moving wildly. Damages have to be clear and concrete - not potential profit.

There is no "extraordinary events". It was just a stock that people wanted to buy for chrissake. LOL Where is the "extraordinariness"? LOL The market is still open. Stocks move. Nobody gets to dictate how much a stock is supposed to move. It could move $1 or it could move $1000. Get used to it!! Wall Street is just too used to dictating how much a stock gets to move for them to make money and now they are just pissed because the "order of things" are toppled and what they have set up is broken. That's all.

Damages in terms of reasonable profit are assessed all the time in court to compensate the damaged party. It's not like it's never done before.

 

[zghorner]

There is no "extraordinary events". It was just a stock that people wanted to buy for chrissake. LOL Where is the "extraordinariness"? LOL The market is still open. Stocks move. Nobody gets to dictate how much a stock is supposed to move. It could move $1 or it could move $1000. Get used to it!! Wall Street is just too used to dictating how much a stock gets to move for them to make money and now they are just pissed because the "order of things" are toppled and what they have set up is broken. That's all.

Damages in terms of reasonable profit are assessed all the time in court to compensate the damaged party. It's not like it's never done before.

They ignored market mechanics...something they have manipulated to their own favor for ages...It’s that simple.

PROOF IN THEIR OWN WORDS (skip to 7:30)

 

[userque]

I think this is part of the problem. Most of “we the people” are brushing this off because they didn’t have any skin in the game.

We out traded their asses for once in a game already rigged heavily in their favor...without doing anything that they haven’t been doing for decades...centuries even. so they literally tied our hands behind our backs at the beginning of the fifth round in the greatest boxing match in financial history...and are still currently losing.

If you are heavily short and the price goes against you...you close. Fundamentals don’t matter. Conditions don’t matter. The market just proved you had a losing hand by going deep red against you. Instead of exiting the position...taking it on the chin like a man and moving on...they stayed in their positions and added capital to cover the margin call. They traded like bums and knew it so they coordinated a short bear attack while eliminating the bulls’ ability to hold their ground. They cheated. It’s fucked.

My understanding is that the total number of shares short, plus the total number of shares owned by people, was greater than the grand total of shares.

If so, then there were no shares available to be bought.

Correct my understanding, or give me your thoughts.

 

[zghorner]

My understanding is that the total number of shares short, plus the total number of shares owned by people, was greater than the grand total of shares.

If so, then there were no shares available to be bought.

Correct my understanding, or give me your thoughts.

That’s true. GME short interest was over 100% so it is impossible for them to have been able to exit the position despite what the media says. It is literal checkmate right now and the bulls are all cheering the way forward...the only issue is often times in a market corner such as this (according to historical examples), the shorts get a bailout and the longs get screwed...has social media and the support or even major media outlets shifted the Likelihood of a favorable outcome to the bulls/lower 99%? Idk but I am betting my entire account plus my IRA plus all of my cash that it will continue to stay bullish at least until Some of the hedge funds are bankrupt.