There’s a good possibility Robinhood has been selling what amounts to completely fake shares of stocks – while fraudulently and stealthily charging and skimming (i.e. robbing) their customer’s accounts, investigative due diligence is finding out.

You can read more from the /r/GME subreddit thread here.

From the post/thread:

RobinHood Securities says in its annual report that they shut down trading due to margin demands. That's because they are engaging in CFD practices and they/you NEVER OWNED YOUR GME SHARES DURING THE RUN-UP.

…

Once RobinHood sells your orders to Citadel, Citadel can buy or sell the needed shares on any exchange they want to, to get themselves the best spread on the price difference. WHEN YOU BUY SHARES ON ROBINHOOD, YOU ARE NOT AFFECTING THE ACTUAL MARKET ORDERS. Your shares that you are buying/selling get collected by Citadel, and they can then buy/sell as they see fit with those orders.

Citadel can collect a large batch of buy orders, and then BUY those shares on a dark pool exchange that DOES NOT DRIVE UP THE ACTIVE MARKET PRICE. And they can also collect large sell orders into one large batch, and then SELL those shares on the ACTUAL MARKET WHICH ACTUALLY DOES DRIVE THE ACTIVE PRICE DOWN.

And boom goes the dynamite.

Among other reasons, this is why blockchain technology and distributed ledger technology and cryptocurrency is so powerful and needed — to severely restrict and limit large scale, systemic, and habitual fraud through thorough transparency and transaction verification.

Wall Street has been consistently doing this sort of thing – skimming, robbing, and back-stabbing – for decades. It's high time for reform.

EDIT:

There's more information at /r/gme_robinhood_facts/ for anyone interested, as well as here.

It should be noted that, at this point, it's hard to tell exactly what is going on. Seemingly there's evidence for gargantuan amounts of fraud, while at the same time the rules and regulations around such possibilities may allow for such thievery fraud biz-nasty-ass.

Either way, or some way in between, the point still stands that much of this heartache and drama and idiocy and illegal and legal and stupid behavior and movement could be duly limited through the use of a more accurate accounting system – a system that uses "blocks" and "chains" in a "ledger" format, perhaps.

It will take a little time to sort through a lot of this. Don't expect a whole lot of official action or reaction on this, necessarily, in the short-term. Many of the regulating agencies are captured by "Wall Street" – so it wouldn't be surprising to see delayed action and reaction to a lot of this. There definitely are knowledgeable people interested in this sort of thing, though, so who knows, maybe we'll see some action related to this fairly soon, which would be a welcomed surprise.