Why do I mention this? Wall Street usually works very hard to find out what their competitors are doing. With Wall Street Bets, they don’t have to work hard at all. It’s all being done in the open. So all of these traders on Wall Street know the trading plan of thousands of retail traders. Meanwhile, Citadel, thanks to the Payment for Order Flow arrangement, has even more data than that.
So the question becomes – is this really Robinhood sticking it to Wall Street? And the answer is, no.
This this isn’t hedge funds versus retail. It’s hedge funds versus other hedge funds (and versus Wall Street “flow” desks, which make money every day, and excel at doing so on volatile days) with retail driving the way forward. Melville Capital may have imploded. But Citadel took part of it over. That’s hardly a resounding victory over the biggest titans of finance.
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