}”Samantha LaDuc
@SamanthaLaDuc
·
4h
SO many money quotes on $GME short squeeze from $IBKR founder Peterffy!
500K accts have GME in some form (IB has ~5%)
$15B in losses that need to be covered
Smaller brokers cannot pay to cover
Counter-party risk is real. Solution is put stocks into liquidation. The End”
It’s all fun and games until your 401k gets hit from the fall out
Ryan Geisler
@RyanEGeisler
I think the narrative surrounding $GME, etc., might be missing something. #RobinHood and #interactivebrokers had such poor risk management for margin and the types of contracts they were allowing that the counter-party risk became so great that they had to kill the game...\
Ryan Geisler
@RyanEGeisler
·
Jan 28
Replying to
@RyanEGeisler
before it went any further. In other words, the “suits” didn’t shut it down. The terrible risk management by the brokers led to a “long-squeeze” before the short-squeeze could happen. This also makes sense when considering why the brokers would throw themselves on the sword?