Everything You Need To Know About The Robinhood Controversy

You would think we had all learned by now that you can't believe everything you read on the internet. Last week, as Robinhood was stopping people from buying GameStop stock, people started circulating screenshots of emails claiming Robinhood was automatically selling their stock without their permission. This was a scam. It wasn't true. Robinhood was not actually selling people's stock against their will, but it sent people into a further frenzy. So when it came out that Robinhood was blocking people from buying shares at the behest of the hedge funds, people believed it. Well, none of it turns out to be true.

Concurrently, there are people who are mad at Robinhood for legitimate reasons. They have legitimate reasons to be mad because Robinhood screwed up. They started out by telling people they were limiting trading capabilities for their own good, when in reality, Robinhood didn't have enough money in the bank to meet regulatory requirements and cover all of the trades. They should have been honest from the beginning.

Here’s my full take: