# Posters On Website Reddit Force Stock Trading Halt on GameStop



## WhatInThe (Jan 22, 2021)

Posters on the website Reddit forced a halt to trading of the stock for GameStop. Posters on a reddit forum called wallstreetbets went into a frenzy after GameStop was downgraded stirring up a buying flurry. So additional buyers and short sellers needing the stock forced the stock up.

https://finance.yahoo.com/news/gamestop-tug-war-gives-reddit-164728693.html

That was the pump now when is the dump.


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## WhatInThe (Jan 27, 2021)

Apparently they forced a halt to trading on AMC after driving that up 

https://www.cnbc.com/2021/01/27/amc...fund-short-targets-spreads-from-gamestop.html

Again this is a pump and there will be dumps. If it's planned that's manipulation. But are day traders trolling for recommendations on reddit stock sites part of a conspiracy?


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## WhatInThe (Jan 27, 2021)

Now the hedgefunds that shorted GME( bet it would go down) want a pity party and want reddit investigated for market manipulation. But an expert said it's the equivilent of a flash mob it just happened so fast so he said it's not market manipulation.

https://nypost.com/2021/01/27/gamestop-up-another-134-as-officials-raise-possibility-of-foul-play/

It closed up again since the hedgefunds that could afford to cover their bet had to buy the stock to return it/close out position.


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## garyt1957 (Jan 29, 2021)

It's criminal to me what's happening. Robinhood shutting down buying of the stock to help billion dollar hedge funds. These guys do this stuff all the time and now when they get caught by their own tricks they're crying foul. It's a rigged game that's for sure. At least some Senators have weighed in saying this deserves an investigation. But once the money boys buy them off nothing will come of it.


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## mathjak107 (Jan 30, 2021)

Robin Hood did not shut down trading to help the hedge funds .they had to shut it down to stem their own running out of money to provide the float .

don’t forget when you transfer money to a brokerage you can start trading even though the brokerage has not actually received the funds yet which can actually take up to 3 days ...margin and shorting stocks throws increased demand on these brokerages to be able to provide that float.

robinhood had to tap all kinds of credit lines they had


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## garyt1957 (Jan 30, 2021)

WhatInThe said:


> Apparently they forced a halt to trading on AMC after driving that up
> 
> https://www.cnbc.com/2021/01/27/amc...fund-short-targets-spreads-from-gamestop.html
> 
> Again this is a pump and there will be dumps. If it's planned that's manipulation. But are day traders trolling for recommendations on reddit stock sites part of a conspiracy?


It's not really a pump and dump


mathjak107 said:


> Robin Hood did not shut down trading to help the hedge funds .they had to shut it down to stem their own running out of money to provide the float .
> 
> don’t forget when you transfer money to a brokerage you can start trading even though the brokerage has not actually received the funds yet which can actually take up to 3 days ...margin and shorting stocks throws increased demand on these brokerages to be able to provide that float.
> 
> robinhood had to tap all kinds of credit lines they had


It wasn't just RH, there were lots of posts from people who couldn't buy just those few stocks on Reddit. I tried buying GME and AMC on Fidelity and  kept getting an error message, but no problem when trying to buy something else. Coincidence?


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## mathjak107 (Jan 30, 2021)

garyt1957 said:


> It's not really a pump and dump
> 
> It wasn't just RH, there were lots of posts from people who couldn't buy just those few stocks on Reddit. I tried buying GME and AMC on Fidelity and  kept getting an error message, but no problem when trying to buy something else. Coincidence?


Fidelity had a problem with their platform early in the morning . It had nothing to do with GameStop or amc ... I couldn’t sell my bond fund for a few minutes.

here is good explanation of why robinhood had to stop trading those stocks 

https://www.bloomberg.com/news/arti...revent-cascading-failures-q-a-with-larry-tabb


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## WhatInThe (Jan 30, 2021)

I figured the settlement process was part of the problem. Multiple parties have to be paid or get cash before things are finalized. Also I didn't realize one could start trading before initial deposit cleared? Have no problem making the process easier for the retail investor but people should understand how the process works. I have one account with an old school broker and it's 3-5 day settlement on a sale.


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## Don M. (Jan 30, 2021)

These stock market "roller coasters" can really stress a lot of people out.  I much prefer to just stay invested in some fairly conservative funds that have a historical solid return, and let the "gamblers" stay awake at nights.


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## Irwin (Jan 30, 2021)

How are people still buying at over $300 a share? Or, I guess if everybody holds onto their stock and not sell, the price will remain where it is, but it seems like people will start getting cold feet and sell. I know I would, but I'm too much of a pessimist to invest in stocks. I always think the price will go down.


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## OneEyedDiva (Jan 30, 2021)

I think the Gamestop situation is why my brokerages were sending out emails about how "recent volatility" was affecting trading on their platforms, though Gamestop was not mentioned. I got all those messages right after the news broke about Gamestop.


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## garyt1957 (Jan 31, 2021)

mathjak107 said:


> Fidelity had a problem with their platform early in the morning . It had nothing to do with GameStop or amc ...
> 
> 
> 
> https://www.bloomberg.com/news/arti...revent-cascading-failures-q-a-with-larry-tabb


Could be, but like I said the only two stocks I couldn't buy were GME and AMC. That's quite the coincidence.


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## WhatInThe (Jan 31, 2021)

mathjak107 said:


> Fidelity had a problem with their platform early in the morning . It had nothing to do with GameStop or amc ... I couldn’t sell my bond fund for a few minutes.
> 
> here is good explanation of why robinhood had to stop trading those stocks
> 
> https://www.bloomberg.com/news/arti...revent-cascading-failures-q-a-with-larry-tabb


Can only read the article for about 5 seconds before paywall kicks in but here is another on the clearhouse settlement issues.

https://www.cnbc.com/2021/01/30/rob...tenfold-increase-in-deposit-requirements.html

https://www.investopedia.com/terms/d/dtcc.asp

Alot of these fees and commissions can found at the DTCC website dtcc.com. People involved in these trades will not proceed unless they know the money is there or the trades met a prerequisite.


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## 911 (Jan 31, 2021)

Someone or someone’s need to go to jail.


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## mathjak107 (Feb 1, 2021)

911 said:


> Someone or someone’s need to go to jail.


There is nothing illegal here ....investing forums talk up stocks every day ....it is only the fact that so many are acting on it that is causing the issues ....

the problem is for those who have short positions..the margin requirements change as the volatility of the stock changes ...the two day clearing is draining the money of those brokerages process these many trades ..

game stop had the equal to every outstanding share trade 10x ...yet the two day clearing had lots of expenses and people who get paid before the settlement date


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## WhatInThe (Feb 1, 2021)

The big issue should be the naked short selling or more short shares than regular shares. 

https://www.thestreet.com/mishtalk/economics/naked-shorting-is-illegal-so-how-was-gamestop-140-short

Some websites had GME with 79 Million regular shares yet 81 Million shares were shorted. That's at least 2 million short sellers that might not get paid.


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## 911 (Feb 1, 2021)

mathjak107 said:


> There is nothing illegal here ....investing forums talk up stocks every day ....it is only the fact that so many are acting on it that is causing the issues ....
> 
> the problem is for those who have short positions..the margin requirements change as the volatility of the stock changes ...the two day clearing is draining the money of those brokerages process these many trades ..
> 
> game stop had the equal to every outstanding share trade 10x ...yet the two day clearing had lots of expenses and people who get paid before the settlement date


The SEC needs to look into why Robinhood restricted trading on a stock that could only be sold and not bought.


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## mathjak107 (Feb 2, 2021)

911 said:


> The SEC needs to look into why Robinhood restricted trading on a stock that could only be sold and not bought.


They ran out of capital ..they know why ...between margin reserves soaring as stock volatility soared and the two day settlement they couldn’t keep up .

gamestop had the equal of every outstanding share trading 10x ....they had to cover those trades with their capital until getting paid two days later


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## Irwin (Feb 2, 2021)

GameStop is down over 40% right now.


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