The WSB plan would have worked just fine according to the rules of the game, their mistake was not realizing that the rules can change at pretty much anytime.
This is the funniest part to me. Like, WSB has the numbers advantage in just random people willing to play for memes, but that's got nothing on being able to take Robinhood's CEO out to lunch and telling them to shut down trading.
Wall Street's a big ol' club, and WSB wasn't part of it.
The proffered justification is that Robinhood is on the hook to have a certain percentages of the value of the users investments off to the side in a big bucket separate from user money, and when millions of new users sign up to buy a meme stock that is growing unboundedly, having that much money in the other bucket became problematic.
This is the funniest part to me. Like, WSB has the numbers advantage in just random people willing to play for memes, but that's got nothing on being able to take Robinhood's CEO out to lunch and telling them to shut down trading.
Wall Street's a big ol' club, and WSB wasn't part of it.
The proffered justification is that Robinhood is on the hook to have a certain percentages of the value of the users investments off to the side in a big bucket separate from user money, and when millions of new users sign up to buy a meme stock that is growing unboundedly, having that much money in the other bucket became problematic.