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Robinhood, a smartphone application that allows everyday people to easily trade the stock market, is being accused of “colluding” with hedge fund managers to drive down the otherwise skyrocketing price of the gaming company GameStop’s stock.
It was primarily via Robinhood that earlier this week a large group of everyday investors were able to buy enough of GameStop’s stock to cause its price to skyrocket.
Hedge fund managers had been using their vast quantities of wealth/power to keep GameStop’s stock from rising.
Communicating through a chatroom that’s since been banned, the everyday investors worked together to overpower the managers and cause the stock’s value to rise. In doing so, they cost the managers billions of dollars.
However, the stunning move also provoked rage and backlash from establishment elites who quickly circled the wagons to protect their own interests.
First, the chatting platform Discord banned the investor’s chatroom late Wednesday. Then on Thursday, retail brokerages began restricting trades. None of this was necessarily a surprise. As the saying goes, elites gon’ elite.
But what did inspire shock was Robinhood — a company whose mission statement speaks of wanting to “provide everyone with access to the financial markets, not just the wealthy” — choosing to also bend the knee.
“Our mission at Robinhood is to democratize finance for all. We’re proud to have created a platform that has helped everyday people, from all backgrounds, shape their financial futures and invest for the long term,” the company announced in a blog post.
“We continuously monitor the markets and make changes where necessary. In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AAL, $AMC, $BB, $BBBY, $CTRM, $EXPR, $GME, $KOSS, $NAKD, $NOK, $SNDL, $TR, and $TRVG. We also raised margin requirements for certain securities.”
$GME is the stock symbol for GameStop.
In light of current market volatility, we are restricting transactions for certain securities to position closing only, including $AMC and $GME. Read more here.https://t.co/CdJMjGAeFH
— Robinhood (@RobinhoodApp) January 28, 2021
As of noon Thursday, the tweet above boasted over 40,000 comments and almost 20,000 retweets, the vast majority of them scathing denunciations of the company.
And just like support for the investors, which has been stunningly bipartisan with leftists and right-wingers both cheering their victory against the elites, the condemnations of Robinhood have come from both sides.
Here’s far-left “Squad” members Reps. Rashida Tlaib and Alexandria Ocasio-Cortez slamming Robinhood:
This is beyond absurd. @FSCDems need to have a hearing on Robinhood’s market manipulation. They’re blocking the ability to trade to protect Wall St. hedge funds, stealing millions of dollars from their users to protect people who’ve used the stock market as a casino for decades. https://t.co/CGkJxVfzkv
— Rashida Tlaib (@RashidaTlaib) January 28, 2021
This is unacceptable.
We now need to know more about @RobinhoodApp’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit.
As a member of the Financial Services Cmte, I’d support a hearing if necessary. https://t.co/4Qyrolgzyt
— Alexandria Ocasio-Cortez (@AOC) January 28, 2021
And here’s Donald Trump Jr. doing the same:
Yea I don’t recall the part of the story when Robin Hood sells out and starts to be a mercenary for the crown…
Apparently everyone has a price. #ToTheMoon #GameStop 🚀🚀🚀 https://t.co/WPeItjQi9q
— Donald Trump Jr. (@DonaldJTrumpJr) January 28, 2021
Now ask yourself this: How often do Rashida Tlaib, Alexandra Ocasio-Cortez and Donald Trump Jr. agree on something? If you answered “never,” then you’re correct — except of course for this exceedingly rare moment of unity.
See more unity below:
Somebody is going to have to explain to me in what world @RobinhoodApp and others literally trying to force a crash by closing the open market is fair? They should all be in jail.
— Dave Portnoy (@stoolpresidente) January 28, 2021
So @RobinhoodApp, an app named after the guy who took from the rich and gave to the poor, is now blocking the little guy from taking from the rich after the rich and the regulator pressured them. Might need to change the name of the app to SheriffofNottinghamApp.
— Erick Erickson (@EWErickson) January 28, 2021
So are @robinhoodapp and @IBKR ending trading in #wallstreetbets stocks because they are losing their ass on these trades ? Or maybe they dont have the cash to enable the trades at this scale ? Anyone have any insight on their economics ?
— Mark Cuban (@mcuban) January 28, 2021
.@RobinhoodApp always pretended to be for the little guy, today was the ultimate test, they failed.
— Reagan Battalion (@ReaganBattalion) January 28, 2021
All apps stopped letting people buy, but still let them sell. Robinhood etc. So price plummeted. Basically looks like them colluding with the hedge funds to drive down price.
— Medic (@MedicCasts) January 28, 2021
the free market is fine, until super rich people might lose money, then they turn to corporate and government protection. but yeah, “free market.”
— Oliver Willis (@owillis) January 28, 2021
It’s a free market until the rich lose money and want to restrict the poor, but thankfully Robinhood is here to…further restrict the poor so they can keep the rich people rich and honestly this remake kinda sucks. pic.twitter.com/zGhlmhlFQU
— Sarah Kogod (@SarahKogod) January 28, 2021
Even rapper Ja Rule was mad:
I’m NOT @RobinhoodApp ruined that… 🤬 https://t.co/VDmJpnxeWL
— Ja Rule (@jarule) January 28, 2021
There are thousands upon thousands — if not tens and hundreds of thousands — of similar tweets from left-wingers, right-wingers, centrists and libertarians all united in their disgust of not only the establishment elite but also sellouts like Robinhood.
It’s amazing, is it not? Who would have ever thought that all it’d take to finally achieve unity in America would be one app too many selling out to the establishment?
We have finally achieved cross-partisan “unity” thanks to the laughably corrupt machinations of @RobinhoodApp
— Michael Tracey (@mtracey) January 28, 2021
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Vivek@bizpacreview.com
V. Saxena is a staff writer for BizPac Review with a decade of experience as a professional writer, and a lifetime of experience as an avid news junkie. He holds a degree in computer technology from Purdue University.
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