Playing the Game of Infinite Leverage

bloomberg.com

27 points·pliny··6 comments

Summary: Robinhood's margin system is completely broken and allows for practically infinite leverage. One guy leveraged up to 1'279'550 USD on a 4'000 USD deposit.

Current "leaderboard":

https://www.reddit.com/r/wallstreetbets/comments/drt5tr/guh_...

And an outbreak of memes on Reddit:

https://www.reddit.com/r/wallstreetbets/comments/dr4iem/cont...

https://www.reddit.com/r/wallstreetbets/comments/drxcpw/this...

https://www.reddit.com/r/wallstreetbets/comments/drsxau/the_...

https://www.reddit.com/r/wallstreetbets/comments/dr3eki/say_...

https://www.reddit.com/r/wallstreetbets/comments/dpwa5v/in_l...

People wondering what is Robinhood even doing:

https://www.reddit.com/r/wallstreetbets/comments/drmr6y/how_...

https://www.reddit.com/r/wallstreetbets/comments/drn8gf/this...

https://www.reddit.com/r/wallstreetbets/comments/dr6gus/robi...

Other thread about this https://news.ycombinator.com/item?id=21454344

This is just a game, right? From what I read,this isn't actual stock, options, or leverage except in namesake.

Did I miss something?

Yes. RH is lending these people real money to execute real trades. RH should be ashamed of themselves, this has the potential to be a existential fuckup.

It's a pretty amazing oversight on their part. If it goes badly, they will lose a great deal of money.

100% real money and real trades.

Reply on news.ycombinator.com