Lawmakers at a congressional hearing kept coming back to the chief of the stock-trading app with pointed questions and a key argument: “Something very wrong happened here.”
The trader who pumped up the stock on the internet will appear next week with the leaders of the Robinhood app and hedge funds that lost big during the frenzy.
Vlad Tenev has incited the fury of the trading app’s fans amid a stock market frenzy. His lack of preparedness on nuts-and-bolts issues was part of a pattern, former employees and analysts said.
The high volume of trading by its customers, many of them egged on by social media, has put a strain on the company’s balance sheet.
Its users buy and sell the riskiest financial products and do so more frequently than customers at other retail brokerage firms, but their inexperience can lead to staggering losses.