Robinhood got called up at 3am with an extortion demand for $3 billion due that morning, unless they shut off Buy orders of GME.
The collateral call had nothing to do with Robinhood’s ability to pay for the orders it was placing.
The problem was the GME short sellers were insolvent at the prices the stock was trading at, and contagion from the hedges failing would have left the clearinghouse looking at billions in loses.
The collateral call had nothing to do with Robinhood’s ability to pay for the orders it was placing.
The problem was the GME short sellers were insolvent at the prices the stock was trading at, and contagion from the hedges failing would have left the clearinghouse looking at billions in loses.