Robinhood lost $57 million after glitch let people short a meme stock

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Robinhood lost $57 million after glitch let people short a meme stock
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Robinhood took a $57 million hit after a glitch allowed its customers to short a surging meme stock

ended up down $57 million in a single day after a glitch let its trading app customers temporarily short a meme stock, according to company executives.'s share price tripled on December 16, when a 1-to-25 reverse stock split for the healthcare company went into effect.

Robinhood covered the short using its cash the same day, incurring a $57 million loss from the incident. Its users aren't normally allowed to short stocks. The loss suffered by Robinhood tops Cosmos' current total market capitalization, with the healthcare stock valued at $56 million as of Wednesday's closing bell.

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