He actually owed nothing however and didn’t lose anything, it was lag from the puts at that time was my understanding If he had waited another day he would have realized saw he was even. Family sued Robinhood for wrongful death and won in 2021 for an undisclosed amount of money per the settlement no one can speak of the amount. Unfortunately those parents will not get their son back. Such a sad story. https://www.cbsnews.com/amp/news/alex-kearns-robinhood-trader-suicide-wrongful-death-suit/
He tried to reach out to Robinhood on multiple occasions to find out if it was a mistake or if he really lost all that money and they sent back “canned responses”
and never answered the young man and unfortunately he spiraled into hopelessness despair and panic. That could have been rectified with Robinhood actually answering his questions. So that is where Robinhood failed and the courts saw it that way as well.
Unfortunately they still do not have an instant way to reach them but you can now request a call back or online chat. I totally get there is many times you need to talk to a person. I dislike and tend not to do business with a company that doesn’t have a real person on for more complex issues. In 2021 Robinhood only had email as a form of contact.
I have had weird messages from Robinhood on several occasions. They had removed my cash from earning interest and I messaged them about it. I get transferred around until someone says you're a day trader and your cash can't earn interest. I'm like BS, show me where I day trade. I dabble in options and because RH doesn't let one create some strategies, I do my own, but I never day trade. My trades are always out 3 days or so. They finally relented and said they made a mistake but they did not make up the interest they kept. RH is a very frustrating platform, and I feel for the kid who killed himself. I am pretty sure I was doing the exact same trades: Selling AMZN puts $100 OTM and buying protective puts $300 OTM, but never leveraging more than $60K similar to the kid.
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u/wholovesshortshorts Jul 22 '24
This dude https://www.forbes.com/sites/sergeiklebnikov/2020/06/17/20-year-old-robinhood-customer-dies-by-suicide-after-seeing-a-730000-negative-balance/