I'm linking a comment to someone who kind of addresses this. I've also linked the interview below. It's an interview of the WeBull CEO and why they had issues. It's pretty clear that this is a process issue, not necessarily a RobinHood is evil issue.
Long story short, the clearing house (similar to when you buy a house) assesses risk and assigns terms based on that. The risk got so high that RobinHood couldn't cover it or their clearing house couldn't cover it anymore.
Whether or not the clearing houses are in bed with these brokerages remains to be seen.
I was also pitchforks out earlier today, and willing to move to webull all my stocks, but then I did more digging and this seems more reasonable. RobinHoods press release was garbage tho.
Long story short, the clearing house (similar to when you buy a house) assesses risk and assigns terms based on that. The risk got so high that RobinHood couldn't cover it or their clearing house couldn't cover it anymore.
Whether or not the clearing houses are in bed with these brokerages remains to be seen.
I was also pitchforks out earlier today, and willing to move to webull all my stocks, but then I did more digging and this seems more reasonable. RobinHoods press release was garbage tho.
https://news.ycombinator.com/item?id=25950191
Link to the video from the OP. https://finance.yahoo.com/video/heres-why-robinhood-restrict...