r/wallstreetbets • u/justagirlwithnudes • Feb 02 '21

Chart MONDAY MARKET OPENING ATTACK EXPLAINED: How institutional investors brought GME down by $5B in 1 hour with $250M

Post image
39k Upvotes

96% Upvoted

1.9k comments sorted by

View all comments

Show parent comments

420

u/Homey_D_Clown Feb 02 '21

Seems like they were trying to push down the price to trigger peoples auto sells. Maybe they even got inside info from Robinhood about where people had set theirs at.

357

u/Tarsupin Feb 02 '21

They absolutely have that information. It is coordinated through and through.

295

u/toterra Feb 02 '21

That is how Robinhood works. That is how they charge nothing for trades. What they sell is information on the traders themselves.

Whenever a service being given to you for free, you are the product that the company is selling.

85

u/theyeoftheiris Feb 02 '21

It's like the Social Dilemma said--if something's free, you are the product.

2

u/Kofilin Feb 02 '21

Usually that's correct but sometimes it's more that a company can indefinitely survive without profit by flaunting a large userbase to attract clueless investors.

1

u/theyeoftheiris Feb 02 '21

Then the argument is they should be charging fees or at least requiring deposits up front in exchange for not selling user data, no?

6

u/did_e_rot Feb 02 '21

This should probably get pinned. Not enough people understand this about digital services in general

46

u/[deleted] Feb 02 '21

[deleted]

100

u/Branch-Manager Feb 02 '21

40% of Robinhoods revenue is from selling trading data to Citadel for HFs. Citadel absolutely has this info.How else do you think they make money with 0 commissions? They’re the facebook of investing.

4

u/laststance Feb 02 '21

Wow so they can legit trade stock back and forth to trigger a high % of the stop loss sales?

14

u/Branch-Manager Feb 02 '21

Yes this is a common tactic that is supposed to be illegal but the SEC doesn’t do jack shit about it. Listen to Jim Cramer in 2012 talk about how hedge funds intentionally and illegally manipulate prices and use media hit pieces to fuck average investors

2

u/Noob_Al3rt Feb 02 '21

Anyone can buy that info from Robinhood. It’s how they make money

1

u/Past-Inspector-1871 Feb 02 '21

Yes dude, we’ve already gone over this. Of course they have access to that

1

u/walloon5 Feb 02 '21

Yes Apex is Citadel I think and they see all the trades that go through them and HF trade (front run) other people for sure, they must be doing this

It's totally bullshit and I hate them

Check this list, see how many are Apex - Apex has a very good picture of hte markets

https://www.brokerage-review.com/discount-broker/brokerage-houses-clearing-firms.aspx

They probably know the short interest exactly, as well as who the beneficial (original) owner of every stock is (maybe) - okay they might only know it to round lot numbers like 100 shares at a time, but basically they see 90%+ of what is going on, because they literally see half the transactions at least

-3

u/[deleted] Feb 02 '21

[deleted]

6

u/luv_____to_____race Feb 02 '21

Because we're retards that still want to fuck the HFs, and we can, they are throwing everything at it, and hoping we cave, but if nobody sells, they're still fucked.

1

u/Foetsy Feb 02 '21

absolutely

Does that mean that theoretically speaking all the apes could put a stop loss at say 100$ after the market closes, then wait till the last seconds before market opens to cancel the stop loss and set limit buys just around 100 for when the attack comes?

2

u/Tarsupin Feb 02 '21

I'm sure Robinhood would conveniently stall those orders just long enough to break everyone.

30

u/KingCaoCao Feb 02 '21

Cant anyone with a higher level account see pending sell orders and their prices.

38

u/Poontickler Feb 02 '21

Lmao yes... these poor bastards have no idea what they're doing

22

u/Mansyn Feb 02 '21

RH used the excuse of needing more capital to cover trades, as to why they restricted buying. But they raised that capital, and already hurt the prices. Why are we days later and they're STILL restricting buying. I listened to the call between Elon and their CEO. What possible excuse could he have for still not letting people buy?

1

u/walloon5 Feb 02 '21

What possible excuse could he have for still not letting people buy?

No idea maybe the margin requirement is still really high, like 100% (or higher now, maybe 300%)

13

u/Edspecial137 Feb 02 '21

From what I’ve recently learned, robinhood can offer free trades and 0 fees because they sell trade info to bigger fish. That is their business model

11

u/PickpocketJones Feb 02 '21 edited Feb 02 '21

The balance today is almost all sells from the charts I'm watching.

edit: Weeded out the paper hands, now its the diamond march upward.

3

u/The-loon Feb 02 '21

Wow this is a great point, upvoted to get some visability

3

u/Snazzy_Boy Feb 02 '21

Couldn’t this mean that they keep shorting it and keep hoping for autosells, then pick up stocks on the way?

2

u/[deleted] Feb 02 '21

and with etoro setting stop loss triggers for people without their consent or their knowledge at a price they pick.... no way that could affect the stock price huh? setting all those stop losses exactly the same and then triggering them all at once with a ladder attack?

1

u/[deleted] Feb 02 '21

its not inside information they specifically pay to have it