Scenario 1:
1. Client buys share for $400
2. Hedge funds get short squeezed (because trading is not restricted by Robinhood)
3. Stock shoots up to $1000. Client made $600
Scenario 2:
1. Client buys share for $400
2. Robinhood restricts buying the shares (so the short squeeze doesn't happen)
3. Shares plunge to $50 because the short squeeze failed to happen (ie the hedge fund did not have to purchase the shares at higher prices, which is where the capital that the traders would share amongst themselves would come from)
4. Client lost $350
comboy is saying that the lottery ticket buyer is being kept from participating in a winning strat, which is what's happening to retail investors right now, which is the same thing you outlined. You're both saying the same thing. Not downvoting you btw.
it's not the same because many retailers do lose money because the short squeeze fails to execute. They dont just not make money, they buy shares for $300 and have to sell them for $100
