Today I Want to talk about how the shorts just messed up big time. A fun that is openly shorting. AMC Has just written a letter to the course begging the judge to deny the reverse split. These shorts obviously know that a smaller flow and more volatility is terrible for their large, illegal short positions.

so stay tuned and let's make some money and I'll drive straight in with the key information. So David Murphy tweeted to a fund openly short AMC Finally wrote a letter to the court in opposition of the conversion and reverse split. Now this is a letter from the co-founder senior portfolio manager, and CCO of Ursa Fund management writing a letter to: Chancellor Zurn The Courts These short hedge funders Written Letter Trying to convince the judge that shareholders didn't really vote for the reverse split because the majority of shareholders didn't vote at all and they've basically said they shouldn't have even let AMC shareholders or retail investors actually vote. They're clearly very upset that the reverse split is going going through and they're also very upset with the settlement, begging the judge not to allow the reverse split to go through.

Bearing in mind, this is a hedge fund Ursa fund management that currently holds 11.3 million per options. Therefore, they clearly know the reverse split will reduce the size of the float, massively, making aims seem more volatile, putting their large short position at risk. Obviously, with a smaller flow and more volatility, a short squeeze is more likely and that would obviously screw over their giant short position. Therefore, they're begging for the reverse split not to go through so that volatility is subdued and the price of AMC can be pushed down below five dollars and even lower without the reverse split.

Now, this is actually really interesting because this is the first openly short hedge fund that has written a letter to the courts, and it seems that these short hedge funds are against the reverse split and do not want the reverse split to go through. and that's likely why we're seeing so much fun in the comments below saying that the reverse split is a bad idea, likely because these five comments are part of that short and distort scheme. The reverse split is obviously bad for those shorters and distorters, and that's why they're trying to convince you the reverse split is a bad idea and as Travis tweeted he said, all this proves is that AMC is the biggest threat to the entire Financial system. He said, no matter how much fud trying to stack stocks against each other to spread division, fake due diligence paid YouTubers influences and sock puppet accounts and Bot Farm campaigns, we still hold AMC He said that these short and distorters hate the word long-term investment on AMC and I think another reason why AMC is the greatest risk to these short hedge funds even greater than GameStop is because of AMC share or Amt's portion of Robin Hood's value at risk calculation boss Blunt's tweeted saying that Robin Hood's value at risk calculation was 250 million dollars attributable to GameStop but 850 million dollars attributable to apesit He said AMC has always been more of a danger to Brokers and short Hedges than GameStop as evidenced by the SEC report.

here. Now, it says the largest component of Robin Hood's collateral deposit requirement was a value-at-risk charge of approximately 1.3 billion dollars. Robin Hood Calculated of the 1.3 billion value at Risk charge, approximately 850 million dollars was attributable to AMC and only 250 million attributable to GameStop. Clearly, there was way more retail investors long on AMC back in January of 2021.

and that's why Robin Hood's value at Risk charge was so much more attributable to AMC than it was to GameStop And as Nazim tweeted, he said, all we need is for somebody to get margin called to trigger a short swap blowout Guys, if you haven't already, please be sure to sign up to me with a sponge for today's video by signing up using the link in the description below, you can currently get up to 15 free stocks entirely, commission free trading Free level 2, Market data and most importantly of all, Mumu is very easy to use. It's very clear and concise. Now this is what I've said all along: As soon as the first few hedge funds start falling, it will push the price of AMC upwards as they close out of their smaller short positions which will cause larger hedge funds than to fall. And obviously as more larger funds then.

But all, they'll also have to close out of their short positions, pushing AMC up even higher, then finally liquidating those largest hedge funds that have those illegal short positions. Now, even though AMC poses more of a risk to these short hedge funds, it may be a short hedge fund that gets liquidated on their GameStop short position first which then ends up triggering the Liquidations in AIM C Just because AMC poses more of a risk, it does not mean that it will squeeze first and actually I think AMC will squeeze later as I'll explain a little bit. but he said Can Someone confirm if I Can is currently getting margin called on their GameStop short position or if it's another fund or if no funds have been liquidated yet. We know that Carl Ican is currently short on the whole market and is currently down around nine billion dollars so far over the last few years and it looks like his losses are continuing to grow so far he's been stumping up additional collateral from his own personal wealth, but it won't be long until this runs out.

And when he does actually get entirely margin cooled, those crazy lady tweeted, she said, by the way, I Hereby predict that the meme stocks GameStop and AMC will be the last stocks to squeeze. She believes there's an order of importance or an order of size. She thinks Silva will be the first thing that ends up squeezing, and then big Tech which is actually technically currently squeezing and then some of the more heavily shorted Kathy Wood stocks and Tesla and then those smaller cap stocks, and finally the meme stocks. We know the hedge funds are going to close out of their smaller short positions first, and those short positions that do less damage to the overall fund and the overall industry, so that likely means they'll be closing out of their smaller small cap short positions first, then closing out of their Tesla shorts and other Kathy Woods stocks shorts until finally closing up their mean stock shorts the largest and most damaging and again of those meme stock shorts, they're likely going to close out of smaller short positions in, say, Bed Bath and Beyond Nokia and blackberry.

until finally then closing out of their short positions in GameStop and finally AMC the largest short position. And she said the squeeze is still on. and what we're seeing right now is them trying to find the money to pay us, fighting behind the curtains in the banking sector, while at the same time some secrets are being spilled. And speaking of damage to these hedge funds and to the overall financial sector unusual I was tweeted saying breaking news: a default on the debt limit could lead to an economic downturn as bad as the Great Recession with 8 million Americans losing their jobs and the stock market's value Falling by around 45 per the White House Council Obviously, if the stock market did all 45 in a matter of only a few weeks I Think that would absolutely be a trigger or a catalyst for the short squeeze because we know that with a 45 Market dropped, that would end in hundreds, if not thousands of hedge funds being margin called and liquidated all at the same time.

And if thousands of these hedge funds, both long and short hedge funds getting liquidated, many of them would most definitely be holding AMC and GameStop shorts. and again, that would effectively be the first few hedge funds being liquidated, which would trigger the start of the squeeze leading to larger funds being liquidated after, and especially with the Fdds racking up higher and higher over the last few months of 2023. I Think it's only a matter of time until this Mass liquidation happens. We can see from this chart, especially in the spikes in 2023.

We're seeing more Ftds now than we ever have all the way back in 2022 and in 2021 in May and June as well. And you can see, especially since January of 2023, these Fdds have been getting larger and larger. We can see originally the Fdds in 2023 were spiking around two to four million that they increase to around six to seven million, it increased again to between 10 to 12 million, and finally between 18 and 20 million. I wonder in the next few releases of FTD data with these number of Fdds Will Spike even higher I wonder what the next spike is going to be.

It's going to be 20 to 25 million or even highest. 25 to 30 million ftds in a singular day. One thing I do know is these Fdds are spiraling out of control more and more. And I think there's going to be a certain limit of ftds that you can incur before the squeeze does end up happening.

Is that limit going to be at 30 million 50 million, 100 million ftds in a singular day? I Don't know. But what I can see is these Ftds are getting larger and larger and especially after the reverse split when the float becomes more scarce and the volatility increases, it's only going to increase the number of Ftds, but also increase that cost to borrow free as well. And I think that's scarcity of the reduced float. Harry AMC's Costa borrow past a thousand percent per year to two thousand, three thousand, or even five thousand percent per year.

Again, that is an inhumanely high short borrowing fee percentage. and I doubt many hedge funds out there could support that short borrowing fee for an extended period of time. A short borrowing fee of five thousand percent per year is equivalent to a 14 borrowing fee per day. Imagine having a billion dollar short position and paying a hundred and forty million dollars per day to sustain that.

Sure. So, I think if we did see a borrowing fee of over three thousand to five thousand percent I think it'd only be a matter of a few days before a number of hedge funds did close out of that short position because I think there's only a handful of hedge funds like Citadel Susquehanna And that's pretty much it that could support a 14 per day borrowing fee. But guys, be sure to let me know what you think down in the comments below. And as always, guys, be sure to ding that notification because that way you'll be alerted when upload a new video.

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