Exposing The Robinhood Scam: Here s How Much Citadel Paid To Robinhood To Buy Your Orders zerohedge.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from zerohedge.com Daily Mail and Mail on Sunday newspapers.
Robinhood had already been forced to raise $1 billion from shareholders
And it had restricted the purchase of 50 stocks Friday; down to 8 Monday
That came after clearing house NSCC demanded a $3 billion security deposit
Last week s wild trading was driven by small investors on the message board Reddit, who took on hedge funds that had bet against shares of GameStop
Small-time investors had driven a 1,600% rally in the shares of the game retailer
By closing bell Monday the market saw Gamestop s shares down nearly 31%
Now silver has become the latest example of the influence wielded by followers of WallStreetBets going up against big-time investors
Trading app Robinhood late on Friday restricted purchases of 50 different stocks
List included meme stock GameStop but also General Motors and Starbucks
It followed a wild week of trading fueled by anti-hedge fund Reddit insurgency
It became clear that Robinhood was under severe strain with its cash reserves
Company is required to place deposits with clearing houses to cover trades
Robinhood said Saturday its deposit requirements increased ten-fold this week
Company tapped credit lines for $600M and received $1B investor bailout