I don't think that's quite accurate either. It's not that RH's service is terrible, it's they had to cut trades to meet regulatory obligations. But, by only cutting trades in one direction. And that happened to be in the direction that favors their largest customer. And that customer also happens to be on the hook for much of the short squeeze... The optics are TERRIBLE.
They didn’t cut trades in one direction. They closed new positions in both directions. Buys were still allowed to close short positions, just the same as sells were allowed to close long positions.
