[lake_vincent]

Spoiler alert: they had help. Robinhood is a wolf in sheep's clothing - they are controlled by, and beholden to, criminal enterprises such as Citadel. This "in-house" trade clearing system is actually Ken Griffin's personal honeypot. It is built for one, and only one purpose, and that is to fleece retail investors at all costs while simultaneously creating the appearance of being retail's champion.

It's a neat trick, and I'd almost respect their enginuity if they weren't robbing people blind. I wouldn't touch Robinhood's products or common stock with a 100 foot pole, and neither should you.

Edit: See my other comments below for an idea of how/why this works.

[MrMan]

I also would ever use Robinhood instead of a reputable broker like TD Fidelity Vanguard IB etc. But not for the reasons you stipulated. Back office systems aren't put in place to "fleece" anyone.

[lake_vincent]

Back office systems are exactly where Citadel, the market maker, could put a tiny little window to peep at data they shouldn't, so they can frontrun every trade retail investors make!!

The secret ingredient is crime ;)

[adrr]

How ia a market maker robbing retail investors? Is that even possible?

[lake_vincent]

Wouldn't it be wild if a market maker also controlled a hedge fund, and also had members installed on regulating bodies, but then like, PINKY PROMISED they wouldn't abuse their positions? And then imagine if the SEC were complicit because it's run by an ex-Goldman henchman?

Nothing bad would happen, right?

[cercatrova]

This is straight out of /r/superstonk or /r/wallstreetbets. The conspiracy theories about Citadel, Ken Griffin and Robinhood rival QAnon levels of culting. I've heard it said that these theories, including GME, are like QAnon for people interested in personal finance rather than politics.

[lake_vincent]

Lol, right, because things like this have never happened before. In particular, the years 1998 - 2008 were devoid of financial crime, and are a decade of restrained, ethical capitalism that we should all aspire to. Gentlemen of Wall Street today are just trying to return us to that gilded age, and any suggestion to the contrary is conspiratorial madness I do say, good chap!

Thank you for pointing out my severe mental illness and inability to think clearly about such lofty matters. I'll go take my meds now.