If not criminal it sounds like a class action lawsuit.

Others in this thread are pointing out issues with arbitration, which really muddies the water on how this can be handled. Definitely complaining to the SEC though. Imagine if they did the inverse of this, and stopped anyone from being able to sell a stock they were heavily invested in. That would be absolute madness. It’s the exact same ass-covering.

Arbitration is usually bad for consumers but in volume it can be terrible for the offending company. Ususally folks dont go through it with but if you get WSB to ally and do mass arbitration to stick it to the man robinhood is an a world of hurt on legal costs.

I think RH can probably hide behind the excuse of "We thought it was a pump and dump scheme and tried to cool down the market". I'm not certain this isn't, somewhere in its core, a pump and dump scheme, even if the majority of people buying seem to be honest in their intentions.

This is purely fundamental. As of this morning, short interest was still 139% of float - which means that there are still exist buyers who will pay any price, no matter how high - or default on their shorting obligation.

Is it anything but rational to buy something you know someone is willing to pay any price (at this point in time) with the intention of selling it later?