Ironically the actual explanation here isn’t the most parsimonious bc of the complexity of market making, which makes this a hot house for conspiracies.
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Truth is hard when the truth is “we’re out of money”
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maybe true, would be interested in seeing a full argument for something like this laid out
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The CEO couldn’t look like a man in need of liquidity on national tv before signing the first deal
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Yea, an epic failure of comms. All they had to do was some version of what WeBull did. Hey, we’re under strain bc of clearing capital requirements, but our liquidity position is strong tho short-term strained. By lying, they lost credibility and added fuel to the liquidity fire
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Still a question on independent decision making of their clearing house, DTCC. It’s owned by its member financial institutions including Robinhood and Citadel - need transparency on who, how, and when liquidity requirements changed.
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lying to your customers is like using regular expressions "now you have two problems"
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The interesting question is whether the CEO followed advice of counsel when he spoke, head lawyer is former SEC commissioner so I have to think advice was to speak whole truth or not speak at all
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