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A comment on Robinhood Traders Discovered a Glitch That Gave Them ‘Infinite Leverage’. Parent comment
Outcome 1: "they use collection agents to collect YOUR money. Robinhood will recoup the 100k$"
Only if the loser has $100k. Which they probably don't. Also, this ignores collection costs against people who do.
Outcome 2: You have a lawsuit from someone dealing with the TOS.
You also forgot Outcome 3: The SEC comes calling and fines you far more than $100,000 for allowing margin to unqualified investors.
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Outcome 1: "they use collection agents to collect YOUR money. Robinhood will recoup the 100k$"
Only if the loser has $100k. Which they probably don't. Also, this ignores collection costs against people who do.
Outcome 2: You have a lawsuit from someone dealing with the TOS.
You also forgot Outcome 3: The SEC comes calling and fines you far more than $100,000 for allowing margin to unqualified investors.