Charlotte, NC — Over the past couple of days, there has been a lot of noise surrounding the stock market. In particular, a group of private investors joined forces to take on the Wall Street elites and attempt to buck the system to make some money. They ended up being amazingly successful.
Hedge funds began to complain about the billions of dollars they were losing. Many were holding positions short on certain stocks, but the actions of the private investors forced them to sell those positions taking losses. Melvin Capital was said to have lost $3 billion.
Robinhood was the platform that many of these individual investors had used to conduct their activity. At one point it was reported that 50% of Robinhood accounts held GameStop stock, along with many others that had been discussed. Robinhood, along with many other platforms, froze trading involving those stock accounts and would not allow anyone to take action.
Some users reported that Robinhood was forcing sales of GameStop stock, which should never happen. One user reported that he was forced to sell all of his holdings.
Robinhood is closing peoples holdings in $GME ?!
— Stock Lizard King (@StockLizardKing) January 28, 2021
The actions by GameStop resulted in many speaking out against the actions. Elon Musk quickly tweeted that here would come the support for those hedge funds and mocked the actions of Robinhood. He then said to “get shorty.”
Here come the shorty apologists
Give them no respect
— Elon Musk (@elonmusk) January 28, 2021
Sen. Ted Cruz (R-TX) and Rep. Alexandria Ocasio-Cortez (D-NY) both spoke out in support of an investigation into Robinhood. The actions that the company took prohibited the free market from operating. It prohibited individual investors from being able to compete on the same level as the hedge funds.
These major hedge funds and professional traders constantly take action that results in the loss of money for the daily average investor. By taking action to affect stock prices, millions of Americans have lost money, but there is no outrage over how these funds continue to get rich. Robinhood took the side of the Wall Street elites and against the free market.
Fully agree. 👇 https://t.co/rW38zfLYGh
— Ted Cruz (@tedcruz) January 28, 2021
If an investigation is pursued, it is expected to receive bipartisan support.
Many Robinhood users are already leaving the platform with many more expected in the coming days. There are multiple alternatives for Robinhood that offer free trading as Robinhood has been popular for. Webull and Public have both emerged as popular choices.
JD Washington is the Editor-in-Chief at The Liberty Loft and host of The JD Washington Show. Be sure to subscribe to The Liberty Loft’s daily newsletter. If you enjoy our content, please consider donating to support The Liberty Loft so we can continue to deliver great content.