Robinhood’s actual customer is Citadel. Citadel was funding the short sells, investing directly into Melvin Capital, for example.
Robinhood did not act against its customers. Its users are their product, which it sells to Citadel. As you see now, this is way more than an edgy quip: when its free you are the product.
I just want to know how do you know for sure what those guys have been doing. Have they exposed all their trades? Are you saying that they were so stupid to not have hedged it?!
This is a hedge fund's game as it is for WSB.
It is the regular traders that have shorted via option that are losing money just the same. They are the most likely bag holders because they they don't hedge.
Robinhood did not act against its customers. Its users are their product, which it sells to Citadel. As you see now, this is way more than an edgy quip: when its free you are the product.