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They didn't block behaviour that would lead to that. They disabled their core product and raised $3.4 billion in a week to cover their fuck up. Most likely, the

They didn't block behaviour that would lead to that. They disabled their core product and raised $3.4 billion in a week to cover their fuck up. Most likely, the founders of RH found themselve significantly diluted by this event and if they hadn't been able to raise more capital they likely would've gone bankrupt even if they disabled everything. That's pretty much the definition of over-extending yourself.

swampthing 6y ago
Where are you reading that they would have gone bankrupt even with the trading restrictions they put in place?
- ric2b 6y ago
  Why else would they need an emergency $3.4B fund raise?
  - sobani 6y ago
    To keep up their margin requirements to allow GME trading. If they had kept blocking GME buying, they wouldn't have needed the extra funds, but also would've pissed off their clients even more.
    - ric2b 6y ago
      But they did block GME buying anyway.