A smart and very successful trader tells me the following:

“One of the craziest things from @andrewrsorkin’s interview with RH CEO is how many times he talked about having the top app in the App Store. “

“So you have the nicest plane, but if you have a rookie pilot would you ever fly on that plane? They have savvy tech guys running a risk management business and they know nothing about risk management.”

“They should have raised the amount of money that they required each customer to have to trade the most volatile names and should have increased that amount proactively.”

“Because RH didn’t have adequate capital as required by the options and securities clearing houses they basically forced their customers to liquidate their positions to lower the company’s exposure. That’s why the stocks went down so much after they did that.”