here’s how robinhood screwed over the average investor today by selling shares without their permission - a thread.

earlier today, many investors realized their shares of gamestop were being sold without their confirmation. these sales, most if not all unprompted, affected a wide group of robinhood investors, and began driving the price of gamestop down

robinhood did this around the same time that they blocked users from buying any more shares of gamestop, AMC, blackberry, nokia, and others which were being discussed on r/WSB. pretty ironic, considering what they “stand for”

this is totally illegal right? actually no - crazy part is, robinhood is ALLOWED to do this. how? well, when you sign up for a RH account, you’re auto registered for a margin account, NOT a cash account. meaning you don’t actually OWN the shares, you’re “borrowing” them from RH

since tons of new investors who created their accounts in the last week were invested in GME/AMC/NOK/etc., they may not have yet switched to a cash account. meaning robinhood can do what they determine to be the “best financial decision” for their company. predatory marketing 101

it gets even crazier - Citadel capital, who pumped more than $1 billion into Melvin capital to bail them out, processes all of robinhood’s trades. conflict of interest much?

there is already a class action lawsuit filed against robinhood in the southern district of NY. however, as some have already pointed out, this probably won’t be able to do much either - hedge fund money is deeply ingrained in our government. https://twitter.com/mike_streets/status/1354850612073009155

seems like a bleak outcome, but there is a silver lining. Millions have taken note and seen what our finance industry can destroy and what our government is willing to allow. these people will not sit back and watch as the rich play by their own rules. this is just the beginning.