Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Copycat merchants are improving themselves as they exploit Robinhood's "endless money" problems – and one user already owns a $ 1.7 million portfolio

Copycat merchants are improving themselves as they exploit Robinhood's "endless money" problems – and one user already owns a $ 1.7 million portfolio



  Breaking Bad Money AMC

  • Merchants use a problem in the Robinhood app to trade endless delivery of borrowed money and one user said they turned a $ 3,000 deposit into a 1.7 share million dollars.
  • Call_Warrior, a member of the r / WallStreetBets layout, posted screenshots Tuesday night showing how the bug was used to buy 47,600 shares of Advanced Micro Devices. The post was then deleted.
  • Trading involved a problem that added the value of call options sold to consumers' purchasing power. There seems to be no limit to how many times a trade can be executed.
  • A spokesman for Robinhood, Lavinia Chirico, said in an email Tuesday that he was "aware of isolated situations and communicated directly with customers." [1
    9659004] Visit the Business Insider homepage for more stories.

Merchants rise to one another with a mistake in Robinhood's commercial app, and one user holds the crown after converting a $ 3,000 deposit into a $ 1.7 million position.

A member of the r / WallStreetBets subreddit, coming out of Call_Warrior, published Tuesday on the use of a trading problem to raise a deposit to hold more than $ 1.7 million of Advanced Micro Devices shares. The post was then deleted, but the screens show that the app is being used to collect 47,600 AMD shares.

"After realizing I only had a few thousand dollars for gambling, I decided not to try this new bug," Call_Warrior writes. "After seeing the people of the almighty wallstreetbets wager an average of 50,000 or more with this new feature, I decided it was just a clear choice to raise the average for everyone's good."

The trade includes Robinhood Gold users selling options for borrowed money through the app. Then Robinhood incorrectly adds value to the options sold in a user's money pile, giving them greater purchasing power. Traders can repeat this cycle and there seems to be no limit to how much the user can use the trick. An r / WallStreetBets person described the error as "an endless code for money fraud."

A spokesman for Robinhood, Lavinia Chirico, said in an email Tuesday that he was "aware of the isolated situations and communicated directly with customers." The company did not comment on when the bug would be glued, but the app received an update on Tuesday.

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saw the limitless potential of the buck as a challenge, commenting Wednesday morning about plans to "buy as much AMD as possible" and said the motivation to post deals came from seeing other traders' disappointing positions.

An application error was discovered by a r / WallStreetBets member who goes by ControlTheNarrative who said they used to make a $ 2,000 deposit into Apple's $ 50,000 options. When the iPhone maker traded higher the day the options expired, the Reddit user lost the loan money and later posted a reaction video on YouTube.

Days later, someone named MoonYachts said he used the mistake to turn a $ 4,000 deposit into a $ 1 million position. MoonYachts explained how they withdrew from the deals and told other users "DON'T DO THIS"

It is not immediately clear what the legal consequences of commerce are, but a law professor at Georgetown University warned that Robinhood merchants could they face a spectrum of consequences.

"If there is an element of fraud, you have achieved that by using a loopback in the system, I can see how this can turn into a securities fraud," Donald Langeworth told Bloomberg, adding that traders can [19659018] Now read more market coverage from Markets Insider and Business Insider:

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