Ask HN: How could Robinhood have avoided the negative PR from GME?
Based on everything I have read so far, it seems reasonable to conjecture that Robinhood had liquidity issues compounded by a clearinghouse that was rejecting orders, causing them to stop allowing GME buys. How could they have responded instead to stay afloat without alienating investors or running afoul of regulations?
I've seen people say Robinhood should've continued to allow purchases from users with cash on hand and not based on margin, but that still wouldn't resolve the clearinghouse problem. Was this always going to be a lose-lose scenario requiring fundamental changes in Robinhood's operation from the start (e.g. having multiple clearinghouses if that is something that can happen?), or was there a better response Robinhood could have taken in their existing condition?
Note that even some other brokers had the same issues, so the negative PR may be magnified by the sheer number of retail investors on Robinhood.
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