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Could be something like if Citadel goes insolvent and only makes their payments for flow to Robinhood on a delayed schedule, then Robinhood may not get paid for
by cma 6y ago
Could be something like if Citadel goes insolvent and only makes their payments for flow to Robinhood on a delayed schedule, then Robinhood may not get paid for the last quarter or year of income and incur huge losses.
- astrange 6y agoCitadel (who loaned Melvin a lot of money) and Citadel Securities (who pay RH for order flow) are not the same company - they used to be, but have split up.
- cma 6y agoCorporate veil could be pierced if there was attempt to have one of the companies change Robinhood's behavior on behalf of the other, but that is pure speculation and many of the other explanations make sense too.