Anthony Pompliano discusses the GameStop short squeeze with a guest, focusing on how Reddit users identified and exploited the opportunity, putting pressure on Wall Street firms. The guest, from Robinhood, describes the context of early 2021, including increased interest in investing, the pandemic, and stimulus checks, which led to unprecedented growth for Robinhood. He explains that the market was not built for the "Five Sigma" event of viral social media activity funneling into a few stocks, leading to Robinhood and other brokerages restricting trading due to collateral calls from the NSCC. Reflecting on lessons learned, he emphasizes the importance of clearer communication with customers about potential brokerage actions in volatile markets to counter misinformation and conspiracy theories about collusion.
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