Robinhood may be between a rock and a hard place if the SCC finds that the discussions on Reddit constituted a conspiracy to manipulate the market, primarily using Robinhood, that Robinhood must have been aware of.

Robinhood probably is also trying to protect most of its users from being the last ones holding the hot potato. Robinhood has very little incentive to conspire with hedge funds, but every reason to protect their users form themselves, if they think many of their users are taking on risks that will likely hinder their ability and/or willingness to use Robinhood in the future.

This should not be construed as investment advice for or against GME at its current price.