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Second infinite leverage bug found in Robinhood. Team post on r/wsb, gets banned (reddit.com)
20 points by Moodles 3 days ago | hide | past | web | favorite | 12 comments

Neither of these links provide much context to me.

I'm assuming most of the people reading will already know what's going on, but if anyone's willing to post a quick summary with some context for my sake, I'd appreciate it.


That is where the new glitch is detailed. Honestly, I'm surprised they're still allowing margin trading at all without a secondary complete audit of the functionality given that they clearly don't have the best regulatory requirement traceability.

Explanation: https://reddit.com/r/wallstreetbets/comments/e4vatr/infinite...

“Infinite price improvement”

I don't know if this is a real thing, but this exchange kind of sums up what I think is probably the best case:

"I couldn’t figure out a way to show it but when you receive your money when the iron condor expires your margin will double"

"What do you plan to do with your increased margin? Lose more money than you have? That might be fun"

This was actually shown to be a hoax, or at the least not reproducible. Most of the people selling the iron condors with ridiculous limit prices did not get filled.

Is Hackernews really the right place for this kind of forum drama?

Reddit already has a subreddit to discuss in-Reddit drama: r/subredditdrama

Hackernews is not a good place for forum drama.

Hackernews is a great place to discuss infinity money glitches in the MMORPG we call NASDAQ.

This is probably a better forum for legitimate discussion for people not up to speed on the backstory. Reading the discussions on WSB is going to require you to parse out a lot of inside jokes and sarcasm.

Are there any downsides to making option trading illegal?

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