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by manfredo 1947 days ago
I didn't know about any liquidity issues. But of that's the case then yeah, this is just regulatory limits kicking in. Though one could make the argument that they should have banned the sale of all stocks, not just GME, AMC, and other stocks targeted by the reddit short squeeze.
3 comments
pb7 1947 days ago
I think Robinhood fucked up greatly here in the eyes of their customers, even if they had no real choice in the matter, but they stopped the buying of a dozen or more stocks (e.g. AAL which was not at all targeted by WSB) that had their reserve requirements increased. I believe normally its in the single digit percent, many of them were increased up to 100%.
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MuffinFlavored 1947 days ago
> I didn't know about any liquidity issues.

Of course not. There were 9,000,000 people in a subreddit convincing each other the stock was headed to the moon getting thousands of upvotes. The real information on what was going on (like the shares short / float metrics being outdated by 15 days) were deeply buried.

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ratsmack 1947 days ago
>liquidity issues

Yes, there was. Robinhood was not meeting the deposit requirements of their clearing house which is why they required a huge cash infusion from Citadel.

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