Robinhood has now entered full blown crisis mode as even more stocks are restricted
Amid reports that Robinhood executives are in bed with the hedge funds another report has surfaced. According to multiple reports out Saturday afternoon, Robinhood now claims that the reason why it restricted so many stocks is because that its cash reserve was running low.
Editors note: When Robinhood references its cash reserve at least in this instance they are referencing their "Instant Deposit" feature. It is similar to borrowing money from a pal and then paying them back.
Now back to where we started.
According to the company, more than 50 stocks including Starbucks and General Motors, have all been suspended until further notice. The move as explained comes in part because Robinhood can't afford to be the Robinhood in which it was designed t o be. As a result of the int...