Well, to the best of my understanding, it became known that a couple of major hedge funds had shorted GME more than 140% of the total shares outstanding, which does in fact violate lawful position limits, clearly intending to manipulate the market and possibly drive GME into bankruptcy. When the situation was brought to the attention of the crowd of young people who use the Robinhood app, they correctly surmised that if they bought shares of GME (went long GME), it would cause a short squeeze on the naked short sellers.
Now the way I see it, if another large hedge fund had gone long GME, no one would have thought twice about it. It is only because Robinhood is not a member of the big boys club that everyone is upset.
At some point Robinhood management was running into some difficulty fulfilling members orders, and since I don't trade with that app I have no understanding of that process, and has established some limits.
What is your understanding of the situation?
Well, to the best of my understanding, it became known that a couple of major hedge funds had shorted GME more than 140% of the total shares outstanding, which does in fact violate lawful position limits, clearly intending to manipulate the market and possibly drive GME into bankruptcy. When the situation was brought to the attention of the crowd of young people who use the Robinhood app, they correctly surmised that if they bought shares of GME (went long GME), it would cause a short squeeze on the naked short sellers.
Now the way I see it, if another large hedge fund had gone long GME, no one would have thought twice about it. It is only because Robinhood is not a member of the big boys club that everyone is upset.
At some point Robinhood management was running into some difficulty fulfilling members orders, and since I don't trade with that app I have no understanding of that process, and has established some limits.
What is your understanding of the situation?
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