While you're right that eventually the music will stop, this thread is about direct intervention. There isn't a way I see that the intervention protects retail at all. By its nature it ensured a full crash and retail didn't see it coming.
A full crash is ensured by the fact that the stock is massively, massively overvalued. If they are taking steps to prevent it from becoming even more overvalued, the upshot should be less money getting lost overall.
Possibly, you are only part of the crash if you have to buy at the top which, from my understanding, would be the short sellers as it is driven to a 1 time spike. There would be bag holders from not having limits set correctly and all but that's the risky play.
Doing this way ensures that retail loses, 100%. Only a retail app was blocked.
It is the asymmetry, I can't see a valid reason for unilateral action from RH here.
I don't see this ending well for (some of) the Robinhood crowd. Wall Street has deeper pockets. Robinhood manages $20B in total. A small-ish hedge fund has like, a few billion dollars AUM. There are many such hedge funds, and a couple dozens much larger ones.
A couple funds with large short positions have popped, but short interest hasn't budged; they were just quietly replaced by other funds. At this point probably every hedge fund who trade equities is short GME. If your position is not too large and you have enough cash you can just keep meeting the margin calls and collect your free money when the bubble bursts.
(And stop loss orders don't save you if the crash happens fast enough.)
> At this point probably every hedge fund who trade equities is short GME.
I agree. Anybody who doesn't think that the algorithms have locked onto GME is stupid or hopelessly naive.
You're not punishing Wall Street, they've already priced you in and are waiting to take all your money.
Suckers.
"One of these days in your travels, a guy is going to show you a brand-new deck of cards on which the seal is not yet broken. Then this guy is going to offer to bet you that he can make the jack of spades jump out of this brand-new deck of cards and squirt cider in your ear. But, son, do not accept this bet, because as sure as you stand there, you're going to wind up with an ear full of cider."