Robinhood Misses The Mark

Robinhood is racing to raise $1 billion from existing investors, ahead of plans to reopen trading of GameStop and other ’90s nostalgia stocks. If true, however, it would mean that Robinhood was willing to risk a massive loss of users, which would then decrease the inherent value of its order data.

Robinhood prevented its users from buying shares or call options on a bucket of stocks that had been shorted by funds and bid up by Reddit and TikTok traders. Several other trading platforms also put some limits on such activity.