If it doesn’t every Robinhood trader will have their account locked, and will only ever get paid a fraction of its value years from now.
While that is more than fair for WSB traders who caused this mess, there are likely many hundreds of thousands of innocent customers who may have not bought one share in GME getting the same punishment.
They are SIPC insured and every single regulation and capital requirement is designed so the broker fails first before any customer assets are at risk. Maybe some stuff in flight might have issues.
It might create a liquidity crunch for some people but the idea that people would only get a fraction of their account is pretty much FUD.
But the idea they could go months or years without getting access to the stocks in their account isn’t. And it’s small consolation to get all your GME shares back only when it’s trading back at $20.
Hedge funds didn’t bury Robinhood under 100,000 bad reviews. Both the shorts and longs have a vested interest in keeping Robinhood afloat, but the WSB doesn’t seem to realize that.
