Read the article and find out what is really going on with the short seller squeezes done by /r/WallStreetBets.
- Robinhood is free because YOU pay more for the stock than it really costs.
- The market makers love this action – they get paid by the trade.
- Most of the trading was NOT retail investors, but large firms going in / out for quick profit, or large funds using the higher stock price for other reasons (debt to equity conversions, for instance).
- Most of the Reddit crowd will lose their investments
The article defends short selling as a market cleanup tool. The clout of those massing up leverage worries me – they like to keep the up, and give us the down. But that isn’t really a fault of short selling, but politicians helping out short sellers that own them. Neither is fixable, at least not until our election systems magically become uncorrupted (which I don’t hold hope for).