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The risk is being assumed by the person buying the stock, not Robinhood. Further this doesn't explain why Robinhood can sell to Citadel but not to some random Redditor. Except of course that Citadel is the one paying Robinhood, and also the owners of the company that will lose if the stock...

False comparison, and ignoring the point entirely. I don't need a loan to sell my house, but whoever is buying my house needs a loan to make the purchase. Further even cash-up-front traders can't buy on Robinhood so the comparison falls flat on it's face. I can't buy Gamestop on Robinhood...

That doesn't really answer why they have enough collateral for every other stock on the market simultaneously but the collateral somehow isn't there for Gamestop (and a couple others, I know). And of course it just kicks the can to who decided to raise the collateral requirements so much...

So... collateral dollars become selective, and can be spent on the purchase of McDonald's stock but not GameStop? Unless for some reason they maintain a separate and inmiscible pool of collateral for each stock, this just adds an extra remove, but doesn't explain why they can't trade GME yet...

I don't quite get why Robinhood ran out of cash and thus couldn't allow people to buy GME stock, but somehow still had cash on hand to buy all the other stocks in the exchange. I'd think if you're out of cash, that means you no longer have cash. Money isn't selective about what it's spent on...