The crypto world has imploded in the past year, causing pain for investors, traders, and companies. The well-known investing app, Robinhood, has not been immune to the volatility of the market, as evidenced by its latest glitch that has left investors short and frustrated.
On December 16, little-known Cosmos Health's share price tripled, but a 'processing error' left users able to temporarily short the stock. This glitch caused chaos in the stock market, as many investors lost money due to the mistake.
AMC Entertainment Holdings Chairman and CEO Adam Aron lashed out at Robinhood Markets in a Monday tweet after the company briefly ran a promotion that allowed users to buy one share of the movie theater chain and receive another free. Aron accused Robinhood of turning its users into "day traders" and argued that the promotion would only lead to "more volatility, not less."
This is not the first time Robinhood has experienced a glitch that has caused its users to lose money. In fact, last year, Robinhood made a 'processing error' that left its customers short on a meme stock. The error cost the trading app $57 million, and many investors were left with a sour taste in their mouths.
Investing app Robinhood experienced its second major outage in two days. The first outage lasted for more than 16 hours, while the second lasted for several hours. Many users were left unable to sell their shares during these outages, causing them to miss out on potential profits.
A Robinhood glitch is seemingly losing users' money. Many investors have reported that their balances are incorrect, with some even showing negative balances. This has caused panic among investors, who are unsure if their money is safe on the platform.
Alex Kearns believed he owed $730,000 when the Robinhood app mistakenly showed he was required to buy $700,000 in shares and restricted his account. Kearns, a 20-year-old options trader, took his own life last June mistakenly believing he had lost nearly $750,000 in a risky bet on Robinhood. His death has raised concerns about the safety and security of the platform.
Amid the wave of newcomers to what has become a casino stock market, a novice options trader takes his own life. This tragic event highlights the dangers of trading on platforms like Robinhood, which can be confusing and overwhelming for inexperienced investors.
Overall, the recent glitches on Robinhood have caused chaos in the stock market and left many investors frustrated and angry. It is clear that the platform needs to improve its security and reliability to prevent these issues from happening in the future. Investors must also educate themselves on the risks and dangers of trading on these platforms to avoid potential losses and tragedies.