Interactive Brokers does allow naked selling of options, and also shut down trading probably for similar reasons. Robinhood could lose money in any number of wa

Interactive Brokers does allow naked selling of options, and also shut down trading probably for similar reasons. Robinhood could lose money in any number of ways if a stock gaps and some of it's customers go bankrupt. If you buy or sell stocks with the intent to manipulate the price (either through a pump and dump scheme, or a short squeeze scheme) that is illegal. It doesn't matter whether the action is only buying or only selling. It is the intent.