Thread by @EnergzdEconomy

Here’s what’s going on (a thread):
The biggest “victim” of the $GME event was Melvin Capital. Citadel LLC & others infused capital into Melvin to keep it afloat. wsj.com/articles/citad…
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Citadel LLC is a huge hedge fund which owns, among other things, Citadel Securities. Citadel Securities has been one of Robinhood’s biggest customers. cnbc.com/2019/04/18/a-c…
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Citadel Securities is a high frequency trading firm that uses/has used Robinhood data to undercut trades. It calls itself a “market maker.” citadelsecurities.com

Since March, its traders have been "decamped" to a Palm Beach hotel.
chicagobusiness.com/finance-bankin…
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It’s likely that Citadel Securities profited off of the recent events. But now Citadel probably thinks it's time to go back to normal. Citadel has saved Melvin (because of close ties). Makes sense for Citadel to want to end this blip in the establishment’s system.
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Citadel & other HFT’s, not retail investors, are the real customers of Robinhood. In June JPMorgan estimated avg Robinhood account was only $1000-$5000. The profits come from selling the trade data.
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So, when Wall St firms like Citadel need Robinhood to stop facilitating something, Robinhood must comply. Hence, Robinhood shuts down these "controversial" trades.
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