The conspiracy theory is that they restricted trading in order to crash the GME ... | Hacker News

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hntrader on Jan 31, 2021 | parent | context | favorite | on: Why Robinhood disabled buys but not sells

The conspiracy theory is that they restricted trading in order to crash the GME price, thereby benefiting Citadel. There seems to be a "legal" way they could've done this, which is failing to be sufficiently capitalized for when the DTCC reqs change.

Hanlon's Razor and all, I fully agree, so I think this isn't the most likely explanation, but I don't think the prior for it is that low either.

franklampard on Jan 31, 2021 [–]

I wouldn’t dismiss that theory as conspiracy theory, given Steven cohen’s history of convictions.

hntrader on Jan 31, 2021 | [–]

To be fair, that's not pertaining to Citadel (which RH sells flow to) but to Point72, a different backer of Melvin Capital

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