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Taking this line of thinking a bit further, they may have been trying to get more money from investors, and if they haven't already, now these stories are out they might not be able to. So I wouldn't be surprised if Robinhood freezes all accounts over the next week, and the SIPC gets involved.

What SIPC does: https://www.sipc.org/for-investors/what-sipc-protects And thankfully Robinhood Financial LLC of Menlo Park CA is a member: https://www.sipc.org/list-of-members/R

I would assume there is almost no one with over $500,000 using Robinhood, but if so, you better get your money out now.



They just raised 50 million dollars a week ago according to crunchbase [0] and I doubt they have blown through that already.

[0]: https://www.crunchbase.com/funding_round/robinhood-series-e-...


It takes only 50 customers like the guy above to loose their money to some ill-conceived put option.


Considering the posters of /r/wallstreetbets have a leader board going to see who can glitch the most leverage, it's well within the realm of possibility

https://old.reddit.com/r/wallstreetbets/comments/drt5tr/guh_...


Unless I've missed something, it would only require 1 customer with a serious risk appetite.


I believe the phrase is a high "Personal Risk Tolerance"




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