I would like to expand your results, due to some d
Post# of 148212
(Total Views: 463)
Posted On: 01/29/2021 4:37:49 AM
I would like to expand your results, due to some dots I was able to connect. Some sources are german, so I will include translated parts of those quoted articles.
https://www.manager-magazin.de/finanzen/boers...b1bf76f718
Translation:
"The typical approach of these flash mob traders: They invest against the short positions of well-known hedge funds that bet on falling share prices. For example, the hedge funds Melvin Capital and Citron, which were addressed directly in the Reddit forum, got into trouble this week due to the continued price increases of Gamestop. The $ 13 billion US fund Melvin Capital had to be supported with $ 2.75 billion from the investment houses Citadel and Point72 to avoid the largest hedge fund bankruptcy since 1990."
GameStop Short Seller Melvin Gets $2.75B Funding From Citadel
https://www.benzinga.com/news/21/01/19312927/...el-point72
Ok, so Citadel backs up shortsellers. Very interesting.
Now some heard that on Thursday Robinhood blocked investors from purchasing companies like GameStop, AMC, BlackBerry and Nokia, all of which have been the subject of rallies over the past days. One could ask, why was that?
The head of all this is a billionaire called Ken Griffin, CEO of Citadel hedge funds.
https://www.handelszeitung.ch/geld/die-geheim...perreichen
Translation:
" (...) Hedge funds, so-called high-frequency traders, are also winners. Their names are Citadel or Virtu and they make thousands of commercial transactions with a wink. Today they are responsible for half of the total trading volume in stocks on many stock exchanges.
One of their businesses can be illustrated as follows: If you, dear reader, want to buy a share, Citadel will know shortly beforehand and, as a high-frequency trader, has enough time to buy the share and then sell it on to you at a slightly higher price.
Now to the point what that has to do with Gamestop and Reddit: Many small investors buy the shares through the Robinhood platform. There you can trade for free: buying and selling shares does not cost anything - unlike banks in Switzerland, where each trade can quickly cost a few dozen francs.
Robinhood can offer this for free because these trades are funded by the high frequency traders - Citadel in particular. In return, Citadel receives insight into the stock exchange orders that are entered via Robinhood. This intensifies the price explosion at Gamestop.
If a retail investor wants to buy a Gamstop share, Citadel buys beforehand and sells immediately afterwards - at a slightly higher price to the retail investor.
(...) Citadel, however, has long since secured its profits. That makes Kenneth Griffin (52), the boss of the company, even richer. He's already so rich he can afford an art collection worth $ 800 million. Including a painting by Paul Cézanne, which he bought for 60 million dollars, and a work by Gerhard Richter, which was worth 46 million to him.
Griffin's total net worth is estimated at around $ 16 billion. In 2019 alone, he earned 1.5 billion at Citadel. This year it should be even more."
So there is a real mafia operating here. They have built a system that practically couldn't lose until now. In order to protect their system they simply switched off Robinhood and now Robinhood is facing a federal class action lawsuit:
Robinhood hit with class-action lawsuit after restricting GameStop stock
https://nypost.com/2021/01/28/robinhood-hit-w...top-stock/
Interesting times ahead:
Reddit co-founder Alexis Ohanian says GameStop stock market war is ‘seminal moment’ for finance
https://www.independent.co.uk/news/world/amer...94424.html
Quote:
"The hedge funds stand to lose billions of dollars in the exchange.
Alexis Ohanian, the co-founder of Reddit, told CNBC's Squawk Box that the battle represented a turning point in American trading norms.
“I do think this is a seminal moment. I don’t think we go back to a world before this because these communities, they’re a byproduct of the connected internet,” he said. “Whether it’s one platform or another, this is the new normal.”
He told the program that the forum-driven short squeeze was simply the latest iteration of the internet and its ability to bring disparate groups of people together under a common cause disrupting the status quo.
https://www.manager-magazin.de/finanzen/boers...b1bf76f718
Translation:
"The typical approach of these flash mob traders: They invest against the short positions of well-known hedge funds that bet on falling share prices. For example, the hedge funds Melvin Capital and Citron, which were addressed directly in the Reddit forum, got into trouble this week due to the continued price increases of Gamestop. The $ 13 billion US fund Melvin Capital had to be supported with $ 2.75 billion from the investment houses Citadel and Point72 to avoid the largest hedge fund bankruptcy since 1990."
GameStop Short Seller Melvin Gets $2.75B Funding From Citadel
https://www.benzinga.com/news/21/01/19312927/...el-point72
Ok, so Citadel backs up shortsellers. Very interesting.
Now some heard that on Thursday Robinhood blocked investors from purchasing companies like GameStop, AMC, BlackBerry and Nokia, all of which have been the subject of rallies over the past days. One could ask, why was that?
The head of all this is a billionaire called Ken Griffin, CEO of Citadel hedge funds.
https://www.handelszeitung.ch/geld/die-geheim...perreichen
Translation:
" (...) Hedge funds, so-called high-frequency traders, are also winners. Their names are Citadel or Virtu and they make thousands of commercial transactions with a wink. Today they are responsible for half of the total trading volume in stocks on many stock exchanges.
One of their businesses can be illustrated as follows: If you, dear reader, want to buy a share, Citadel will know shortly beforehand and, as a high-frequency trader, has enough time to buy the share and then sell it on to you at a slightly higher price.
Now to the point what that has to do with Gamestop and Reddit: Many small investors buy the shares through the Robinhood platform. There you can trade for free: buying and selling shares does not cost anything - unlike banks in Switzerland, where each trade can quickly cost a few dozen francs.
Robinhood can offer this for free because these trades are funded by the high frequency traders - Citadel in particular. In return, Citadel receives insight into the stock exchange orders that are entered via Robinhood. This intensifies the price explosion at Gamestop.
If a retail investor wants to buy a Gamstop share, Citadel buys beforehand and sells immediately afterwards - at a slightly higher price to the retail investor.
(...) Citadel, however, has long since secured its profits. That makes Kenneth Griffin (52), the boss of the company, even richer. He's already so rich he can afford an art collection worth $ 800 million. Including a painting by Paul Cézanne, which he bought for 60 million dollars, and a work by Gerhard Richter, which was worth 46 million to him.
Griffin's total net worth is estimated at around $ 16 billion. In 2019 alone, he earned 1.5 billion at Citadel. This year it should be even more."
So there is a real mafia operating here. They have built a system that practically couldn't lose until now. In order to protect their system they simply switched off Robinhood and now Robinhood is facing a federal class action lawsuit:
Robinhood hit with class-action lawsuit after restricting GameStop stock
https://nypost.com/2021/01/28/robinhood-hit-w...top-stock/
Interesting times ahead:
Reddit co-founder Alexis Ohanian says GameStop stock market war is ‘seminal moment’ for finance
https://www.independent.co.uk/news/world/amer...94424.html
Quote:
"The hedge funds stand to lose billions of dollars in the exchange.
Alexis Ohanian, the co-founder of Reddit, told CNBC's Squawk Box that the battle represented a turning point in American trading norms.
“I do think this is a seminal moment. I don’t think we go back to a world before this because these communities, they’re a byproduct of the connected internet,” he said. “Whether it’s one platform or another, this is the new normal.”
He told the program that the forum-driven short squeeze was simply the latest iteration of the internet and its ability to bring disparate groups of people together under a common cause disrupting the status quo.
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