Robinhood is not Melvin, different companies have different net asset based and borrowing ability. Melvin was also bailed out by Stephen Cohen, who the Melvin

Robinhood is not Melvin, different companies have different net asset based and borrowing ability. Melvin was also bailed out by Stephen Cohen, who the Melvin founder worked for. Cohen likely believed in the founder and already knew enough about their positions to be able to make such a huge investment in such a short time frame. Equity investments typically take too much time to complete due diligence when your firm is drowning in a hurricane. Robinhood was rumored to have tapped all their available credit lines for $1B before they ran out of cash. I suspect we will read about an equity infusion in the next few weeks, if they make it that long.