They kind of have to talk about their position to try to get others to join in. But as history shows, it can back fire.
Small traders have huge losses and chances are good they do not have monies to cover all their losses. Robinhood is going to go after them at some point. They cannot just eat all those losses. Robinhood just took a $100 million line of credit with multiple banks. One can only imagine how much those traders losses have Robinhood absorbed so far.
How do small traders have losses on this? Most of them have rode these pops up, not down; it's the shorts that are hurting. Or do you think the little guy has somehow been shorting GME the whole way up?
Some made monies but, I think more retail traders are more likely greedy than have common sense. And yes, some retail traders might have shorted GME and AMC. Robinhood has been closing trades. One guy on Gab.com had his trade closed at $500,000 value. He was whining and crying. How much did he lose? Probably, lost more than that. And if he went back in this morning, he might have added more losses to his account. Robinhood took a $100 million line of credit. Why did they do that if not to cover the losses of their clients? Most of the clients of Robinhood are small traders. They might come out with an article detailing the number of losing traders and how much they lost in all. Also, the hedge funds, how much they earned on GME and AMC. People are going to be shocked when it happens.
They dun goofed, cancelled IPO is the least of their worries now: https://www.cnbc.com/2021/01/29/sec...-frenzy-vows-to-protect-retail-investors.html “We will act to protect retail investors when the facts demonstrate abusive or manipulative trading activity that is prohibited by the federal securities laws,” the SEC said.
Where's the data? Robin Hood by stopping buying stopped the price from rising. Robin Hood has the option of closing positions to cover margin. If they stop buying who is going to take the other side of a sell order?
Clearing Firms Caused Brokerages to Restrict Trading: Q&A With Larry Tabb https://finance.yahoo.com/news/clearing-firms-caused-brokerages-restrict-151919911.html
Ever hear of a market maker? That is what they are for. I do not have data obviously, and neither do you. My opinion is based on Robinhood applying for $100 million credit line with banks and I assume based on that, that there are numerous traders who lost huge sums of monies. One trader who posted on Gab.com was liquidated by Robinhood at $500,000. He was whining and crying. I doubt he made any monies. Did some small traders luck out and make monies? Probably, did. How many more lost more monies than they had? Traders have been complaining of Robinhood closing their trades. I will leave it at that. They probably, will publish some data later on as to how many lost monies and how many made monies including, how much the hedge funds earned. There are atleast, a couple of traders who sued Robinhood so, we should be hearing more details as the days go on.