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David Sacks perfectly summarizes the Robinhood debacle


Transcript

I mean, the effects of that decision they made to stop trading. And specifically, they didn't stop people from selling. They only stopped people from buying. So they shut down one side of the trade. And the effect of that was we had these hedge funds from Wall Street. They were on the ropes, right?

I mean, let's discuss who these guys are. These are the apex predators of Wall Street. They are in the business of shorting companies to destroy them. I mean, that is their business model. And they are not academic traders, OK, who are just speculating on outcome. They engineer the outcome, right?

Look at their tactics. Just watch the show Billions, right? They hire PR people. They hire private investigators. They're participating on these message boards spreading disinformation. Look at the year of hell that Elon went through, right? They tried to destroy Tesla. It's like five years. Yeah. Yeah, exactly. They tried to destroy companies to engineer that outcome.

They create nothing. They're in the business of destruction. Now. The beautiful thing is you had these Reddit kids, these pirates who published this manifesto, right, on Reddit, basically being the heirs to occupy Wall Street. They recognize, look, occupying like a physical space does nothing to these guys. We are going to hurt them where it counts in their pocketbook.

We are going to get together and we're going to basically create a trade mob that's even bigger than their cartel. And they did. They got 2.7 million people taking the other side of this trade. And then when the hedge funds doubled down, they said, fuck you, we're going to double, we're going to triple down.

And the guy on Reddit said, listen, paraphrasing John Maynard, Kane said, we can be retarded longer than you can be solvent. And they were winning. That was what they said. Right. And they were winning the trade. Okay. And Melvin was dead busted and Citron was on its way to being dead busted.

And they had to go to big Papa, Stevie Cohn. Okay. And Ken Griffin to get, to get their rebuys to buy their rebuys to get back into the game. Okay. And then they had these guys on the ropes. They had them felted. Okay. And then what happens just at the moment where they're going to like basically bust them out of the game for good.

Robin hood shuts down the buy side of the trade. And so what does that do? It gives these hedge funds time to regroup, to unspool the tray, to reposition and save themselves and to get out of the trade. If they want to get out of the trade, you can never take that 24 hour time period back, no matter what Robin hood does now.

Hey everyone. Hey everyone. Welcome to the all in pod. A billion here, a billion there. Pretty soon. You're talking about real money. I love you, Saks. These are really big numbers. Is spread the opportunity that technology represents. We're probably going to have four Kardashians on there. So four besties on there.

Yeah. Yeah.