Robinhood CEO disproves Gamestop investment

 Yahoo Finance 

Robinhood CEO disproves GameStop multifaceted investments 'paranoid idea' and uncovers what really occurred 

Zack Guzman 

Zack Guzman·Senior Writer 

Sat, January 30, 2021, 12:46 AM·8 min read 

AMC 

+53.65% 

More substance beneath 

GME 

+67.87% 

More substance beneath 

KOSS 

+52.53% 

More substance beneath 

At the point when the dramatic 500% run up of GameStop's stock this week turned around on Thursday to come slamming down subsequent to exchanging stages like Robinhood impeded clients from purchasing shares, there was no lack of shock and speculations with respect to what was behind the exchanging stage's choice. 

One hypothesis specifically, claiming the choice may have originated from outside pressing factor coming from mutual funds shorting GameStop's stock, immediately acquired consideration from an astounding gathering, including Sen. Ted Cruz, Rep. Alexandria Ocasio-Cortez, Reddit, Fox News, CNN, and the Winklevoss twins. 

It's not difficult to perceive any reason why the hypothesis got on so rapidly, thinking about Robinhood, as most significant financiers, does in fact sell its clients' structure stream to Citadel, a speculative stock investments that this week infused more than $2 billion dollars into another mutual funds, Melvin Capital, which saw misfortunes from its short situation against GameStop rapidly heap up. However, Robinhood isn't remarkable in its Citadel association with sell request stream (as Yahoo Finance has clarified in incredible detail previously) nor was Robinhood special this week in suspending client acquisition of specific stocks. 

Where Robinhood's choice to suspend exchanging may get exceptional, nonetheless, comes from a more intensive investigate the genuine explanation CEO Vlad Tenev gave in a Yahoo Finance Live meeting on Friday. 

First up, Tenev didn't steer clear of the real issue in invalidating the "paranoid fear" that external mutual funds like Citadel assumed any part in Robinhood's reasoning.