Robinhood Outages Spike to 4,000 Reports During $75B SpaceX IPO Launch
HOOD•Robinhood’s platform saw record-breaking traffic causing around 4,000 outage reports at midday ET as users faced stuck orders and delayed executions during the volatile SpaceX IPO debut. Despite the hiccups, SpaceX shares opened at $150 (11% above IPO price) and Robinhood’s stock gained 1%.
1. Platform Overload
Robinhood’s systems logged approximately 4,000 outage reports at midday ET as retail investors rushed to trade SpaceX shares through its IPO Access program. This surge created latency in order placement, cancellations and executions, particularly affecting stop-loss and limit orders.
2. Trader Frustrations and Losses
Users reported being unable to exit positions or modify risk-management tools during the volatile opening, with some attributing thousands of dollars in losses to the disruptions. Pending orders remained unresolved for over an hour, exacerbating customer frustration.
3. Recovery and Market Reaction
Essential systems recovered later under continuous monitoring, and Robinhood’s stock rose by about 1%. SpaceX shares debuted at $150, an 11% premium to the $135 IPO price, and climbed up to 30%, briefly valuing the company above $2.2 trillion.
