what's not being discussed here is that Robinhood became their own clearing broker in 2018. I'm sure at the time of the launch it was celebrated with great fanfare as it would "help the consumer" and add to their bottom line. It's not an evil conspiracy but it's the typical silicon valley grow at all costs mentality. They apparently did not account for the risks of being their own clearing broker and having to put up the deposit to the DTC before settlement. However, they should have realized in this past year that their users have a hive mind and have the same collective behavior (which is also why citadel pays them so much), so when a stock gets popular, everyone will be on the buy side. Other brokers such as webull, were able to reenable trading the following day without limits because they use Apex Clearing which likely has the ability to collateralize the trades and has a more diverse set of trades (buys/sells) that net each other out.
Things they could have done to prevent this, that actually would have been good for the user, but limited growth is:
disabled margin trading, reduced account size, use a third party clearing broker.
Yet their crunchbase profile shows they have a head of marketing. That's basically like saying I didn't spend a dime on engineering because I built the app myself.
I think I'm missing the connection to the "legitimate" publisher. Is the publisher paying the scammer for traffic? How are they doing that? unless they're in on the scam as well.
correct link:
https://blog.oxen.ai/reading-list-for-andrej-karpathys-intro...