My god Robinhood, what are you doing???

So the hedge funds want to cover their losses by shorting AMD, so they can get a double whammy: money from both the increase between the original buy and the short, and from the shorting itself.

So, what does Robinhood do to protect their big money? Limit your buys of AMD shares to exactly 1 per day. One. Share. Per. Day. OF AMD. A stock that has been Ryzen since even before Zen got released in 2017, so practically 5 years straight. And which has a HUGE fanbase on the internet.

That will go over well...

https://hothardware.com/news/amd-robinhood-gamestop-gme-shorts-wallstreetbets

RobinHood's explanation is essentially that they saw such a large spike in trading that they could no longer had the capital to be able to put up the collateral required by the DTCC. While I do agree that RobinHood should be investigated for potential market manipulation, there are legitimate reasons to make these changes. When they obtained more capital, they were able to re-open trading, however it was limited for high volume stocks as, again, they only have so much capital. They are protecting themselves, not the hedge funds. 

https://www.barrons.com/articles/why-did-robinhood-stop-gamestop-trading-51611967696

Robinhood is not independent and is mostly payed by the hedge funds Citadel. 65,5% of the transactions on RH are made by Citadel.

They have just shut down their "own tool" last week because they could easily ask for it.

I love when I respond to a point that someone says and they come back the next day making the same exact point, responding to nothing. I'll just add briefly about the comment at 2:20, you are misrepresenting what she said. She is not saying that the people on Reddit are hedge funds (although there is likely some degree of astroturf involved here as well), she is saying that Wall St is also participating in buying because...I mean, of course they are.

These moves were made on apps like Robin Hood. How does Robin Hood make money? A good chunk of their money comes from something called Payment for Order Flow. What that means is that they take all of the orders that people make on an app and selling them. That means the buyer can see what is going to happen and make decisions on how to buy/sell on the market in response to that data, before the actual orders are fulfilled. If they see an abnormally high volume of buys in GME, obviously they would jump on that train.

As for your proposed solution, I have seen little evidence to actually back up the assertion that "short selling" is unjustly damaging. Lots of people like to say "shorting bad" but I've yet to see someone provide actual evidence. In my opinion, the changes that should actually be made, are first of all banning Payment for Order Flow. It tilts the market by giving Wall St advance knowledge of market moves, which shouldn't be allowed. Second, we need to do exactly what Warren is suggesting and give the SEC more power to investigate market manipulation and more clearly defining what market manipulation is.

I love when I respond to a point that someone says and they come back the next day making the same exact point, responding to nothing. I'll just add briefly about the comment at 2:20, you are misrepresenting what she said. She is not saying that the people on Reddit are hedge funds (although there is likely some degree of astroturf involved here as well), she is saying that Wall St is also participating in buying because...I mean, of course they are.

Why is the goal to make some hedge funds go bankrupt?  I can understand principles saying that hedge funds shouldn't be doing some of their practices, and this GME movement is going to change the stock market for sure.  But why is it that internet loves to call one group evil, and wants to destroy it by being evil.  If you want to trade a stock and make a profit, make a profit.  This isn't going to end well for Gamestop and in the end and I wouldn't be surprised if it pushes it quicker down the path to closing for good when everyone sells.

We agree that Warren with no evidence claimed these redditors are hedge funds and should be investigated by the SEC. She is using populist language to mask her defense of her masters at Wall Street.

Yeah there is no defense of Wall Street like a resounding criticism of Wall Street. You are seeing what you want to see, even though it makes absolutely no sense and in no way aligns with reality.