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If he had said that Robinhood put those restrictions in place because of a liquidity crisis, he just lost every Robinhood customer all their money. That’s becau
by valuearb 6y ago
If he had said that Robinhood put those restrictions in place because of a liquidity crisis, he just lost every Robinhood customer all their money. That’s because Robinhood gets forced to increase collateral with everyone they do business with, everyone try’s to pull their funds out, and Robinhood files an instant bankruptcy. Meaning customers get paid a fraction of their accounts years from now.
He didn’t lie, he mislead. And he did it for you.
Edit: Actually to correct myself, Robinhood accounts are insured, so customers accounts are at no risk in a bankruptcy. It may have meant you couldn’t sell your shares for months, while GME slowly works its way back to $20, so I think the point about bankruptcy hurting customers stands.