Robinhood could put a margin freeze on trading these stocks on margin or borrowing against shares of GME. It would protect them and be fair to retail investors.
This is what I don't get. Why do they care if an investor is buying GME shares with their own money? They could easily disable margin trading. I can't point to anything other than blatant manipulation.
If we assume for a moment that Robinhood is acting in good faith (Seems like a stretch but work with me here).
It's possible they are doing this to protect investors. It's pretty clear GME is going to crash at some point in the near future. Having thousands of investors on their platform go broke at once is just bad for everyone (who isn't short). By blocking these trades, RH is protecting investors from potential loss.
In a way, it's almost like preventing someone from investing in a Ponzi scheme. While it might piss you off, it will save you in the long run.
Of course... that's assuming RH is acting in good faith.
I see what you’re saying. But I said in another comment that Robinhood has made it super easy over the years to do all kinds of irresponsible trading and have benefited from it. Today seems like a convenient time for them to be concerned about investor risks. This and their involvement with Citadel makes it hard for me to give them the benefit of doubt.
I guess I wasn't clear... I don't necessarily think RH is acting in good faith. I was just suggesting what I feel is the only possible good faith explanation. Not that I believe that is the case.
I can understand complaining about getting thrown out of a casino for winning too much. I can't understand complaining about getting thrown out for losing too much. The people "investing" in these companies are totally clueless and the majority of them are going to lose all their money. Cutting them off is clearly in their best interest.
Whether or not that kind of paternalism is acceptable is another matter.
