After days of Reddit investors taking on hedge funds, Robinhood switches sides and halts trading on the most popular Reddit-driven stocks.
This week, an interesting war was started in the stock market that very well may go down in history and end up being a Hollywood film depending on the outcome. To break it down in a simple fashion, Robinhood traders who rushed the platform during the pandemic have aligned to take on Wall Street and cost them money. By holding positions in Gamestop, AMC, Nokia, and Naked stock, they stopped the Wall Street suits from squeezing those stocks for every cent and burying the companies which, in turn, caused the prices to skyrocket. Robinhood traders keeping their positions and raising the price is costing hedge funds billions.
For a few days, the Robinhood traders dominated, resulting in the above scenarios. People were seeing amounts of cash they never thought possible. One user even took $50k and turned it into millions. After days of trying to create fake panic for Robinhood traders to sell, the platform stepped in and halted buying on all stocks targeted by Reddit and social media. Is it legal? We aren’t sure, but it’s the age-old story of white wealth changing the rules when the wealth is going to people that do not look like them.
AOC took to Twitter to express her frustration with the investment platform for shutting retail investors out of the massive deal.
“This is unacceptable,” tweeted the congresswoman.
“We now need to know more about @RobinhoodApp’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit. As a member of the Financial Services Cmte, I’d support a hearing if necessary.”
Wildly enough, Republican bozo Ted Cruz even echoed AOC’s sentiments. Things just keep getting weirder and weirder right?