Theoretically as long as the stock goes up and people don’t sell they could Continue buying on margin driving the price so high that it would crash all banks. Robinhood was already struggling to cover and needed a billion $ the other night from investors in risk of imploding. Which is why I was saying that if a massive sell off comes they apps like robinhood will freeze people out and they’ll lose it all.
Robinhood and others just like them are freezing people out by only allowing the purchase of one share at a time.
I think people are focusing on this at the micro level (GME) and maybe should look at the macro level.
Wall Street insiders shorted the U.S. economy based on insider information and some expected series of events, for example:
Crush economy with the pandemic under Trump, short the stocks affected the worst, buy back at bottom, lift Covid restrictions and market recovers.
Crush economy under Trump, short stocks, a Biden win, lift COVID restrictions, buy back before economy recovers.
Crush economy under Trump, short the stocks, a Biden win, keep Covid restrictions, Biden tanks economy, short even more, buy back years from now when economy recovers.
Some big money insiders (Musk, Buffett, Soros, Bloomberg?) have seen the trend of shorting and are now positioned to squeeze the shorts for their own gain. The don’t worry about the absolute downside because the government will bail out the hedge fund bankruptcies.
The only thing different this time is John McCain won’t be around to carry water for the crooked insiders.