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Robinhood has changed their app several times based on users finding various bugs and workarounds that affected the trades they can place. Another famous case
by manigandham 7y ago
Robinhood has changed their app several times based on users finding various bugs and workarounds that affected the trades they can place.
Another famous case is user "1ronyman" who opened up a massive options spread that had a potential loss of $500k which was 50x bigger than his account [1]. Proper risk calculations would never let him make the trade in the first place but Robinhood did and likely had to take the loss.
It shows the dangers of playing fast and loose as a "tech company" in heavily regulated and complex environments like fintech.
1. https://www.reddit.com/r/explainlikeimfive/comments/ah578l/eli5_box_spreads_and_u1ronyman_50k_loss_on/ https://www.reddit.com/r/explainlikeimfive/comments/ah578l/e...
- sdan 7y ago1ronyman said just today that he isn't going to pay RH anything. They haven't forced him to do so at all. He went from $250,000 to $50,000 in debt and as I said, isn't going to pay anything (as far as I know).
- aristophenes 7y agoWould you mind linking to that? Thanks
- manigandham 7y agohttps://www.reddit.com/r/wallstreetbets/comments/dq9hiv/weekend_discussion_thread_november_13_2019/f6iqoyl/ https://www.reddit.com/r/wallstreetbets/comments/dq9hiv/week...
- deleted 7y ago[deleted]