Robinhood obstructed financial specialists from purchasing portions of GameStop a week ago simply after a Wall Street clearinghouse sent the stock-trading startup a dead-of-night interest for $3 billion to help the exchanges, CEO Vlad Tenev said.

Under addressing from tycoon Tesla supervisor Elon Musk, Tenev separated how Robinhood limited trading on a few “image stocks” while under tension from the National Securities Clearing Corporation, a monetary organization that clears and settles stock exchanges between intermediaries.

“Let the cat out of the bag, man — what happened a week ago?” Musk asked Tenev during an early Monday morning broadcast.

“Individuals request an answer, and they need to know the subtleties and reality,” he added.

As Tenev clarified, Robinhood needs to store cash with the clearinghouse — generally known as the NSCC — in view of a few components, for example, the instability of trading movement and “focus introduction certain securities.”

At 3:30 a.m. Pacific time on Thursday — the morning after Reddit’s WallStreetBets message load up started a whirlwind of trading in GameStop and other “image stocks” — Robinhood got a solicitation from the NSCC for a generally $3 billion store, a far bigger number than ordinary, as per Tenev.

“Just to give setting, Robinhood, up until that point, has raised … around $2 billion in complete funding as of not long ago,” Tenev said. “So it’s a major number.”

The NSCC in the end brought the solicitation down to $700 million after Robinhood authorities plot an arrangement to “oversee hazard” in GameStop and other unpredictable stocks on Thursday, as per Tenev.

That was the reason Robinhood incidentally impeded brokers from purchasing new GameStop shares, a move that started boundless shock and a few claims. Robinhood has since permitted its clients to purchase restricted quantities of GameStop offers and alternatives contracts.

Musk — who communicated uphold a week ago for the Reddit gathering that has been taking up arms against Wall Street short-merchants — said the NSCC ought to be more straightforward concerning why it asked Robinhood for a particularly enormous store.

“I surmise individuals truly simply need to know — on the off chance that you had no way out, at that point you had no way out, it’s a weapon to-the-head circumstance. And afterward that is reasonable,” Musk told Tenev. “However, at that point whoever put that firearm to your head ought to be happy to reply to the public.”

“What everybody needs to know is, as, accomplished something perhaps obscure go down here?” Musk asked the troubled CEO. “It appears to be strange that you’d get an unexpected $10 billion interest, you know, at three AM,” he added before Tenev amended him on the sum.

Tenev answered that he “wouldn’t reprimand obscurity to it,” noticing that the NSCC worked with Robinhood to lessen the necessary store.

“Is anybody holding you prisoner at the present time?” Musk pondered accordingly. Tenev attempted to console him, saying, “No, no, I’m OK.”

The NSCC’s parent organization, the Depository Trust and Clearing Corporation, remained by its store prerequisites, saying the NSCC gathers cash “as per counts that are gone ahead in its guidelines.”

“At the point when instability builds, portfolio edge prerequisites increment as well, and NSCC clearing individuals may give these expenses to their customers, including financiers that reasonable through them,” the Depository Trust and Clearing Corporation revealed to The power source in an articulation. “Edge necessities ensure the whole business against defaults and fundamental danger in unpredictable markets.”