So the clearing house requires 100% collateral for some stocks now instead of up to 5%. RH can't afford that and GME has been eating up 50% of RH daily trades.
What would be the impact of that on the global financial markets? On the real economy?
I think we're going to see some difficult regulations on retail investors in the not too far future.
Basically, if I'm lending you money to buy something and that thing is suddenly moving a whole lot more than it used to, it's prudent to ask for more collateral to cover your potential losses.
In a way, its a tragedy of the commons. It would be both sad and ironic if the only casualty of this black swan event were robinhood. But, they likely still have avenues open to them toward recovery.