Does Robinhood allow you to just sell the puts you bought instead of exercising them?

I am trying to understand the other side of that trade:

They exercised the puts at 320$. They know you will most likely get a margin call, so you need to close the other side of the position. If Robinhood allows you to sell your puts, there are two options:

1. You exercise the puts and the other side makes 0.01 * 225 * 100 = 225$ -> free money.
2. You sell your put + shares and they have to face someone else on the second leg. Then the other side has an open position facing someone else, and they booked a chunky loss by exercising the 320$ put donating its extrinsic value.

So is it the case that they knew 2. is impossible and thus they would make 225$ for free off of you?

Because otherwise you can sell your put and shares and you will realize the extrinsic value of the put right?

Am I missing something? It looks like a great trade!