That a small-time broker (as is Robin Hood) wouldn't have enough capital to cover a giant short-squeeze was entirely foreseeable by people who understand what it takes to successfully execute one.
Big players know that when they plan big market moves, they need to notify their brokers in advance, so the broker can prepare.
What we had here was a bunch of retail investors who are somewhat more informed than the average retail investor, but not well versed in the nuts and bolts of the maneuver they were involved in, and therefore the executed it without sufficient planning.
Big players know that when they plan big market moves, they need to notify their brokers in advance, so the broker can prepare.
What we had here was a bunch of retail investors who are somewhat more informed than the average retail investor, but not well versed in the nuts and bolts of the maneuver they were involved in, and therefore the executed it without sufficient planning.