Why did Robinhood disable buy trades on GME, are they covering something up? Either way, users are suing!

As this wild GameStop ride continues the plot thickens with some complex theories floating to the surface.

But what does it all mean and what how does it impact the situation?

Let's dive down this Robinhole ;) to figure it all out!

PLEASE NOTE: This is a very complex situation that is constantly evolving and growing layers so everything in this video is for entertainment purposes only. I am no expert, I'm just a guy with access to internet who is enjoying the ride and wants to share the experience with you.

In a nutshell, on Jan 28th Robinhood along with many other brokers disabled buy orders on GameStop GME stock as well as others. That interference goes against the natural order of the stock market where people are free to buy and sell stocks as they please, based on what they think is the appropriate value of a particular stock.

And Robinhood denying and barring this part of the process, has led to class action lawsuit being filed against them and it is gaining some serious momentum. The claim is that Robinhood has knowingly slowed GME's buying momentum, which drove down the stock price to benefit institutional investors with a vested interest in Robinhood and/or GameStop, RATHER THAN their actual customers.

Robinhood responded through their CEO who didn't give investors much confidence and it added even more fuel to the fire. And we so many parties potential involved and in positions to lose and gain from the situation, it has an eerie feeling about it

In Robinhood's defence, they were not the only brokerage firm who stalled or froze orders, they are just the ones copping the media attention for it.

Either way, this is a multi-layered, complex issue that will likely result in new regulations, particularly around shorting stocks.

ENJOY!

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Disclaimer:
The information in this video is general information only and should not be taken as constituting professional advice.
I am not a financial adviser and you should seek independent, licensed, financial advice to make sure the actions you plan to take suit your individual circumstances.
I am not responsible for the financial decisions that you make, only you are