Chamath Palihapitiya May Have Tried to De-Stabilize Robinhood With GameStop (GME) Trades - Einhorn

April 15, 2021 2:06 PM EDT

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Hedge fund manager David Einhorn was critical of Chamath Palihapitiya's involvement in the GameStop (NYSE: GME) short squeeze and said he got the impression that Mr. Palihapitiya got involved to destabilize Robinhood, a competitor to SoFi, which is merging with Palihapitiya's SPAC Social Capital Hedosophia Holdings Corp. V (NYSE: IPOE).

On January 26, Palihapitiya tweeted he bought 50,000 GameStop (NYSE: GME) $115 calls.

"Mr. Palihapitiya controls SoFi, which competes with Robinhood, and left us with the impression that by destabilizing GME he could harm a competitor," Einhorn commented.

Robinhood restricted trading in GameStop on January 28th and was forced to quickly raise $3.4 billion from investors amid the GameStop turmoil.

Einhorn took it easier on Tesla (NASDAQ: TSLA) CEO Elon Musk, who was also involved in GME, with the two adding "real jet fuel on the GME squeeze", according to the hedge fund manager.

"As for Mr. Musk, we are going to defend him, half-heartedly," Einhorn stated. "If regulators wanted Elon Musk to stop manipulating stocks, they should have done so with more than a light slap on the wrist when they accused him of manipulating Tesla’s shares in 2018. The laws don’t apply to him and he can do whatever he wants."

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