The surge in trading forced Robinhood to raise cash. Robinhood faces a loss of confidence from customers. “Brokers are now ‘protecting’ customers as a facade so that they can appease their institutional backers,” one individual trader told Bloomberg. “The entire community is outraged.”Online rumor-mongering that the trading limits were done to help Wall Street titans — which Robinhood denies — isn’t helping the company’s case. An unlikely mix of lawmakers — including Representative Alexandria Ocasio-Cortez and Senator Ted Cruz — accused Robinhood of imposing trading limits to help out hedge funds caught out by the retail trading frenzy.

Source: New York Times January 29, 2021 12:56 UTC