Thread by @TheDailyMao

1/ The Robinhood CEO's statement on why they limited the purchase of $GME and other stocks caught in the recent short squeeze is misleading. Here is proof:

#robinhoodboycott #boycottrobinhood

2/ Here is a screencap from a chat group of Chinese Robinhood employees. One of them notes that Robinhood is nowhere close to exceeding its OCC margin requirements, even with the elevated trading volumes and price volatility in the securities Robinhood restricted...

3/ One of them then notes that this fact is a 'company secret' and a third then notes that 'if the cash is sufficient [for the margin requrements] then the situation will be awkward'.

4/ Based on that screencap and other conversations, I have it on good authority that neither SEC net capital obligations nor clearinghouse deposits nor any other financial constraint on the part of Robinhood were factors in Robinhood's decision to limit trading of $GME.

5/ Note that Vlad does not explicitly state those financial requirements drove the decision to limit trading, only that those decisions are part of Robinhood's "responsibilities to comply with [those requirements]."

But even this lawyerly statement is, unfortunately, misleading

6/ Again, as the screencap and other conversations have indicated, Robinhood was in no danger of breaching any financial requirements as a result of elevated volatility or trading volumes in the securities it restricted. Given the lawsuit... cnn.com/2021/01/28/inv…

end/ ...the screencap above, I believe, may be useful, and I encourage the plaintiffs in the suit to leverage this in the discovery process.

@MaxBlumenthal @aaronjmate @ulywang @TheRealJoshYe @QianerLiu @kinlinglo @ZichenWanghere @RitaBai

TLDR: The CEO of Robinhood said that he blocked trading in $GME to comply with SEC capital obligations, clearinghouse deposits, and other financial requirements.

That's misleading.

#boycottrobinhood #robinhoodboycott #robinhood