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Comment by pdevr | Hacker News Reader

FWIW, Robinhood posted a statement on their blog[1].

Two snippets:

>In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AMC, $BB, $BBBY, $EXPR, $GME, $KOSS, $NAKD and $NOK.

Also:

>We fundamentally believe that everyone should have access to financial markets.

Cognitive dissonance to the hilt :)

[1]https://blog.robinhood.com/news/2021/1/28/keeping-customers-...

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At least for GME the stock is still rising uncontrollably. If the WSB crowd who mainly uses Robinhood can't buy then who is pushing the price up?

I'm really out of my depth here but my understanding is at a certain point short sellers start getting forced to buy at whatever price, pushing the stock up further?

If you are short you have to put up more and more collateral as the price goes up. So yes, eventually you may be forced to buy to cover your short, if don't have enough cash you are able or willing to tie up as collateral. This can create a feedback loop as short-sellers buy and drive the price further up, forcing other short-sellers to buy, etc., the so-called short squeeze. I have no idea if this is happening now.

That is exactly what is happening right now.

I feel like we're bordering on religion here (which means it doesn't have to be grounded in logic) and its possible that people who were rewarded for holding bitcoin have happily added an extra punt to this campaign. If you can click all the buttons to deal with crypto then I don't imagine its too hard to trade without Robin Hood.

I thought I was done with $GME. I've made money on 3 legs up at this point. But seeing Robinhood do what they did, I closed all my positions, will be withdrawing all of my cash and closing my account ASAP.

I opened a TD Ameritrade account this afternoon and bought a few shares of $GME on principle.

People are flooding robinhood competitors

Most or many of RH's competitors have similar restrictions, however. Hints that the ratio of 'big money' going long was on the rise, and/or short sellers closing their positions. Also, foreign money potentially.

WeBull and a few others had a temporary halt on buys due to their clearing house, but have since resolved and rescinded their limitations. Other brokerages have never stopped allowing buys and longs (but restricted shorts and some margin activity).

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