(I also posted this on /r/wallstreetbets)
CLEARLY, Robinhood knows about the infinite leverage bug, they have the capital, resources and engineers to fix it in a day if they want.
Why are they not doing it? Are they stupid or what? Let's think about it for a second.
There are two possible outcomes here:
Let's say you do some leverage, and then use that leverage to lose 100k+, they can eat the loss briefly, and then they use collection agents to collect YOUR money. Robinhood will recoup the 100k$
You use the same leverage to gain 100k+, then, when you go to cash out to your bank, their audit team blocks the payment, saying that you "Violated the Terms of Service", by using a bug to make that amount of money. Thus, robinhood pockets 100k$. You can't sue them to get that money back, because you violated their TOS.
If I was Robinhood CEO, that's what I would do, a 100% legal, safe way to get rich quickly.
Prove me wrong.
CLEARLY, Robinhood knows about the infinite leverage bug, they have the capital, resources and engineers to fix it in a day if they want.
Why are they not doing it? Are they stupid or what? Let's think about it for a second.
There are two possible outcomes here:
Let's say you do some leverage, and then use that leverage to lose 100k+, they can eat the loss briefly, and then they use collection agents to collect YOUR money. Robinhood will recoup the 100k$
You use the same leverage to gain 100k+, then, when you go to cash out to your bank, their audit team blocks the payment, saying that you "Violated the Terms of Service", by using a bug to make that amount of money. Thus, robinhood pockets 100k$. You can't sue them to get that money back, because you violated their TOS.
If I was Robinhood CEO, that's what I would do, a 100% legal, safe way to get rich quickly.
Prove me wrong.