The names you see above are the names of people you should remember in the distant future. If you’re just now signing on, chances are you’re catching up to the discovery that hedge funds are reportedly crashing thanks to an internet revolution of sorts. A revolution that in part was started by an online group on Reddit only known as “WallStreetBets.”
– Due to the extraordinary interest involving this topic, a follow-up explainer has been published on Citadel & Robinhood.
Despite some arguments otherwise the group does not appear to be alt-right affiliated at all. In fact, they appear to be ordinary people who have had enough with crooked investors using weird tactics to bankrupt companies and others.
This is where companies like Gamestop; Bed Bath & Beyond, Blackberry, and others come into play.
But we did a little internet sleuthing to find the people responsible for Citadel which appears to be a co-partner in Robinhood. According to a previously published article, Citadel pays Robinhood a hefty check for access to its order forms.
It doesn’t stop there. That’s important because on Thursday morning Robinhood abruptly suspended trading for the stocks everybody is talking about even though users quickly discovered why. Citadel is reportedly in bed with Melvin Capital Management who just so happens to be a notorious short-seller for stocks like Gamestop. Melvin according to what we could find has made billions on the bet that said stock would tumble and would continue to do so after winning said bet.
That did not happen. Somehow WallStreetBets managed to undercut Melvin Capital who now reports that their losses are at nearly 100% universally. Melvin on Tuesday wrote off their bearish losses just hours ahead of the lockdown on behalf of trading apps internet-wide (including banks like TD Bank.)
The news has practically gone global. Traders far-and-wide by noon had begun purchasing the stocks only to find that their stocks had been forcibly cancelled or flat out restricted so they couldn’t buy more. Robinhood ‘s explanation was that the company is “trying to protect its users.” But the reality is, its users were only spending what they were willing to lose nothing more.
That’s a very different narrative than what one may find on the television. Contrary to mainstream media belief, the amateur investors taking out hedge funds are not betting their homes and IRA ‘s — but instead spare monies laying around the house.
We’re following this story and the information surfacing about those behind the apps and hedge funds as it unfolds today. Remember folks out there no matter where you are right now — only dump what you can afford to lose.