LogFAQs > #950045034

red sox 777 posted...

Yes, that's very similar to my theory from earlier in the day. Except that there is no way that small retail investors buying long stock is generating liquidity issues.

Why wouldn't this be possible? I've seen it said that 50% of Robinhood's users have GME - it's very possible they are heavily exposed on this enough that Robinhood in particular doesn't have the collateral to keep escalating GME buys, and they are heavily focused on retail investors as their business. I have no real measure of this but my assumption has been that they aren't as big as a lot of other brokers which is why they target retailers.

I'm not sure if I think other brokers like Webull make this clearing house theory more or less likely to be true.... Clearing houses doing this to whichever brokers can't support the purchases would make sense, but even if Robinhood has this issue, does it really make sense these other ones would too?

Your theory is pretty much along the lines of a lot competing theories - all focused on manipulation to prevent the squeeze. If there is no valid mechanic that caused this like clearing houses I'm sure it'll come out at some point with all this talk by congress people and class action lawsuits. If the clearing house thing is a lie, it won't hold up under any scrutiny since the clearing house will just say they didn't do that. Seems like Citadel/Robinhood collusion is the most straightforward.

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