Robinhood Said of GameStop After Elon Musk Tweeted ‘Stonks’

On June 24, Congress published its report on the GameStop “Meme Stock Market Event” as part of its now-completed investigation into meme stock volatility and regulations that could mitigate it. The investigation spanned 16 months, featured over 50 interviews with 19 institutions, and encompassed 95,000 pages of documents.

The core findings of the report ultimately boil down to Robinhood acting irresponsibly, failing to properly anticipate risk posed by volatility despite historic outages and instead prioritizing growth even as it risked becoming illiquid, all of which forced it to halt Gamestop stock trading on January 28, 2021. The report also highlights how an Elon Musk tweet caused a historic spike in user activity which the company debated capitalizing on.

“Robinhood exhibited troubling business practices, inadequate risk management,…