It's a bubble. Bubbles pop. Robinhood's argument would be that they prevented harm to investors by preventing them from putting money into a bubble that was going to pop anyway. As soon as this hit the news you got all kinds of regular people wanting to get in on the action, not connected to WSB.
Bubbles do pop, and this was clearly a bubble but this was not a popping bubble. This was someone picking up their ball and going home. They can make whatever argument they want, we will see how it is litigated out. It was a clear coordinated action though across several brokerages.
I read that GameStop was at one point worth $24B. Do you really think that's a realistic valuation? This bubble was always going to pop, the question was not if but when.
Sure let r/WallStreetBets and Wall Street battle it out. But I don't think that you are accounting for the ordinary people who would read about an amazing way to get rich quick in the news and decide to buy in. That's when the real bubble starts.
Bubbles pop all the time, and retail investors get fucked hard each time. Remember the housing bubble in 2008? How many people got foreclosed on? Did they have a Robinhood app to protect them? Absolutely not. Melvin Capital owns billions of dollars, it's not allowed to get fucked hard. Robinhood users, on the other hand, have access to a couple million at most. That's poor people levels of money. There are no golden parachutes for poor people.
