While one shouldn't rule out conspiracies, it is worth noting that to a brokerage, clients are partly a counterparty, and if the client loses more than 100%, the broker is probably on the hook. They at least have a plausible pretext for tighter margin requirements.
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e.g. IB raised margin requirements ahead of the election, too. It's always sloppiest the first time, though, so RH naturally upset a lot of people.
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https://blog.robinhood.com/news/2021/1/28/an-update-on-market-volatility … Robinhood blames SEC and clearinghouse rules.
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Replying to @jamiequint @ByrneHobart
retroactively applying margin requirements and automatically selling at deepest part of the dip is still pretty bullshit
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Replying to @DanielleFong @jamiequint
Yeah. They definitely handled it badly. But I think the cause was liquidity/regulatory risk, not that somebody asked them to do a favor. At least, that's plausible. It happens more often to hedge funds, e.g.https://www.valuewalk.com/2017/12/marc-cohodes-goldman-sachs/ …
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this is what they are claiming, but i don’t believe it honestly.
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