Apparently one of Robinhood's biggest clients is a company called Citadel. Citadel announced they were investing in Melvin Capital, the hedge fund hit hardest by WSB, on Monday. Now, three days later, Robinhood have stopped people buying certain stocks through the app and allegedly started automatically selling the stocks already held by small investors...
Melvin Capital Management said on Monday it would receive an investment of $2.75 billion from Citadel, the Chicago-based hedge fund led by Ken Griffin, and billionaire investor Steven A. Cohen's Point72 Asset Management.
The U.S. Securities and Exchange Commission waded into the battle between small investors and Wall Street hedge funds on Friday, warning brokerages and social-media traders it was on alert for any wrongdoing in this week's roller-coaster trade.
When the subprime mortgage crisis forced foreclosure for lots of home owners, Wall Street was all "hey, it's the free market, investments have risks". When GameStop happens, they're all "shut those small investors down, we need regulations to protect us."
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