Welcome back to the channel everyone today i want to talk about jim cramer's illegal market manipulation scheme. I also want to talk about when exactly liquidated hedge funds or hedge funds that don't meet margin requirements have to close their short positions, so stay tuned and let's make some money, and now i want to dive straight in with the key information. So if two hedge funds have gone under when exactly do they have to close their short positions. Now i want to answer this question for both funds that are being liquidated like anchorage capital and also funds that are going to fail to meet their margin requirements as a result of evergrande being downgraded to d for default.

As marco metzler says, standard and poor have just dumped chinese property giant evergrande, finally into d as for default, let the show begin, and obviously we know funds like anchorage capital are just in the process of going through a bankruptcy right now. So how long exactly does it take to sell off those shares and cover those put positions, and when exactly do they have to do it? Well, as lou says, a fund can shut its doors, but it takes a few days to settle their positions, get ready. So, even though a fund is going bankrupt and being liquidated, why exactly does it take a couple of days to sell off those positions and cover those shorts? Well, firstly, you've got the t plus two cycle. Obviously, if a company has to sell its shares, it doesn't technically have to sell them for an additional two days as a result of the t plus two cycle.

But on top of that, when a fund is being liquidated, it needs to raise as much cash as it actually can to pay off those creditors. Obviously they need to pay the taxes that they've been charged for that financial year by the government. They also may need to pay sales taxes like v80 in the uk, and they may also have some suppliers. They need to pay as well or employees as well, and on top of that, it is still the fund's duty to return as much original cash as they can to the investors and therefore the fund can't just dump all of its positions all at once.

It needs to somewhat strategically sell them off over the course of a few days so that it doesn't crush the stock's price and they don't get an absolute minimal return. They need to sell the stock off in portions to make sure they don't crush the stock's price and to try and get as much money as they possibly can. On top of that, it is also a somewhat laborious process selling off. Maybe a hundred different shares.

200. 300, 400, maybe even 500 different positions. It's gon na take some man hours and some actual time and therefore right now, even though we are seeing more and more funds starting to go under and close their doors, it isn't all gon na happen in the space of 10 or 20 minutes. It is gon na be drawn out over the space of three or four days, maybe even a week and as i've always said, when the squeeze does happen, it isn't going to be something that takes 10 or 20 minutes.

It is going to be something that takes multiple days, because funds are going to get liquidated at different times and at different amc price points, and some larger funds are going to take longer to liquidate and sell off all those positions and cover those shorts than other. Smaller funds, but obviously rest assured when they do get liquidated all of their shorts and synthetic shorts, will have to be covered in order to properly close down the fund right now, you can currently get five free stocks, valued up to seventeen thousand five hundred dollars with Moomoo, but on top of that you're also in with a chance of winning an iphone 13 pro and many other goodies every single day this month until christmas, all you have to do is sign up to moomoo, using the link in the description below and make your First, deposit be sure to check the messages center every single day for your chance at winning these goodies. You can get two of the five free stocks just by opening your account and depositing one dollar, and if you want all five of the free stocks, you have to deposit two thousand dollars to begin with the chance of winning all of these goodies. All you have to do is open your account and deposit 100 just for opening your account and making your first deposit you could be in with a chance of winning yourself or a significant other or a family member, a new iphone and many other goodies as well.

But obviously be sure to open your account sooner rather than later, as this promotion finishes on the 25th of december. So we know that anchorage capital had 4 million puts on amc, but how many other positions and how many other puts did they actually have from their recent 13 f filings? Obviously, we can see here the four million percent amc, but they also had 500 000 perks on bed bath and beyond. A million puts on blackberry and a hundred thousand perks on gamestop as well, and therefore it's not just amc. That's going to be impacted by anchorage capital, it's a number of other meme stocks as well.

Now you may say that puts don't necessarily equal shorts and naked shorts, but consider this, of course, when people say puts don't equal shorts, they're absolutely correct, but that doesn't mean. There's no relationship between puts and shorts and just because a fund holds puts it doesn't mean they also don't hold shorts as well and as jim cramer used to explain in his private tutorials. You short through puts not through commons as in not through shorting. The common shares, but what did he mean by that? He says we all know? Jim cramer was an expert on fraudulent hedge fund tactics.

Point is, don't assume things work normally or don't assume things work in the same way. We all know that puts can be used to hide naked shorts and they can be used to hide failed delivers by the use of the divorced put strategy using out the money, put options and in the money call options. You've also got total return swaps, which is what our kgos used, which is where one fund like archaegos, effectively swaps, money for another fund's put positions or short positions, and that way one fund can effectively hide their overall short or overall put position by dispersing it between A number of other funds, and therefore, even though anchorage capital held around 4 million, puts on amc, they could have had a lot of other shortage shares as well and they could have even had total return swaps for even more amc puts or amc shorts. And now i also want to talk about the mind-blowing story of jim cramer's illegal market manipulation on the dendron stock.

So i don't exactly want to read this full story word by word, but effectively. What i've done is made a little summary which i'll read to you. Now so, on september 26, 2005, jim cramer, announced on cnbc that a prostate cancer drug developed by dendron had failed fda testing. But, interestingly, on this date, dendron hadn't even applied for the fda testing.

Yet, and on top of this, the results from the preliminary phase iii trials actually looked really good. They actually looked like the drug worked and therefore it was actually very very likely that when they applied for the fda testing, they would almost certainly get the pass. So there was quite a bit of backlash and jim cramer's co-anchor went on cnbc and apologized for jim cramer's mistake, but the very next day, jim cramer, went back on cnbc and said using his medical expertise. He highly doubts the drug will pass fda testing when they apply, so the stock was then beaten down by waves and waves of illegal naked short selling and found itself on.

The regulation show list a number of different times, not just once but multiple times and then on april 28th. So a while later at 10 am there was a message posted in the yahoo comments, section saying: there's a high probability of a massive bear aid or massive naked shorting on dendron, and it's coming today at 12, 30 midday and then just before 12 30 midday, the Stock price didn't just fall: it nose dive from 28 a share to eight dollars a share in 75 seconds. So, just over a minute, the stock had gone from twenty four dollars, a share to only eight dollars per share and because the stock price was crushed. So much still to this very day, dendron haven't managed to raise the cash to release this drug to the general public and the crazy thing is in the us.

There's around 250 000 deaths per year from prostate cancer and this drug can reduce the chance of death by 22.5 percent, with little or no toxicity, and this is something that was all coordinated or at least heavily involved jim cramer on cnbc. So you have to ask yourself who did this, who stood to profit from dendron's demise? Were the extreme, odd delays in getting provenge to market purely accidental, or were the remarkable trading patterns and volatility accompanying those delays? In fact an expression of stock manipulation? If so, who are the manipulators, and since we know naked short selling is a crime who are the criminals? I personally think that it's just obscene that naked short selling like this can completely fly under the sec's radar, especially when it's not just impacting company stocks. But it's also impacting the drugs and the products that these companies create, that could be released to the market and save thousands, if not hundreds of thousands of lives, and now one positive thing i do want to talk about is we now have a little bit more Information about the sec, proposing greater transparency for those total return swaps at the center of the archagos collapse. It says the regulations put forward on wednesday by the sec would require additional disclosure of holdings of security-based swaps, so those total return swaps, once they exceed 300 million dollars or account for five percent of a company's stock and investors will be asked to disclose information, including Their security-based swap positions in which an investor can effectively invest in an asset without purchasing it directly avoiding disclosure requirements and their identities, as well as any related securities or loans.

At least this way, total return swaps on amc, shorts and amc puts will be exposed to the general public and will know just how many shares are being traded or swapped behind closed doors. The sec also disclosed new potential rules for money market funds, basically forcing them to hold more cash collateral, which is obviously good for us, because it brings them even closer to margin. Calls guys be sure to. Let me know down in the comments below what you think about jim cramer's, illegal market manipulation and guys, if you want to stay up to date, with all of my new stock and crypto picks, be sure to check out the patreon.

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