Welcome back to the channel everyone today, i want to talk about whether your shares are synthetic shares or whether they're real shares and whether it really matters are the hedges going to somehow get out of buying back the synthetics and only buy back the legit shares, or Do they have to buy back everything so stay tuned and let's make some money? And now i want to dive straight in with the key information. So i want to start by showing you this video from lou versus wall street to hear what he has to say and then i want to give my opinions on it as well. I'll put one out there for you, so you guys could be happy about this. May be happy, maybe not, but at the end of the day you should be look.

There's a group of us that came in december january february, the beginning when there was actually shares okay, then there was no more shares and everything was i gotcha and every now and then there was a loose couple of shares whatever when the covering starts to happen. There's a lot of us that actually have physical shares that are held on the side, okay and when we're holding, they need our physical shares. So if you have shares like we do wheelchairs you're good to go. If you have synthetic credit, i got you guatemalan, brazilians, you're, still good they're gon na buy it from you, but here's the interesting thing, even if they buy yours they still gon na, have to keep hunting for mine because they can't return yours, your was nothing but A ledger fugazi: they still have to come back and get real shares.

Okay, the end of the day you can't return synthetics, you can buy them as real ones, but you can't return those and they won't know. What's going on. So, at the end of the day, you want to talk about prices going up how many synthetics did they create on top of the original shares that were out there? That's why this play is crazy. So, as we heard from lou there, the hedges have to buy back the synthetics, but also have to buy back the legit shorts as well.

Yes, they have to buy back the synthetics, but they can't return the synthetics to the rightful owners because technically synthetics don't have a rightful owner as they were created and not issued, and on top of that, obviously, the hedges have to buy back the legit shares as Well and return those to the original owners and effectively cover their legit short positions. So obviously, on one side, we've got the legit shares. We've got a float of 513 million shares and there's about 80 to 100 million legit shares that are shorted at any one time, depending on what the data is showing from s3 partners or from ortex or whatever data source you're using and then obviously, on the other Side we've got synthetic shares, there's probably around 1 to 20 billion synthetic shares issued and obviously all of those have been naked shorted. They wouldn't create synthetic shares too long.

They only ever create synthetic shares to shore. So we can assume that any share that has been created, that is, a synthetic, has also been shorted guys if you haven't already be sure to sign up to blockfy to get up to 250 in free bitcoin. When you open an account using the link in the description below and make your first deposit with blockfy instead of just buying some bitcoin and some cryptocurrency and leaving it in a wallet and forgetting about it, you can earn interest on your deposits up to nine percent Per year, so you can continue to accumulate more and more and more crypto and when you've generated a massive profit on that investment. Instead of selling off your crypto and potentially missing out on the next run-up and recognizing all of those gains for tax purposes, you can take out a crypto backed loan with blockfi.

That way, you can get cash to meet your day-to-day expenditure without having to sell your crypto and right now, blockfire also offering a rewards credit card with an introductory rate of 3.5 cashback on your purchases, also paid in crypto. So again, you can accumulate more and more on top of that with the rewards credit card, there's also no annual fees and no foreign transaction fees either, but unfortunately it's only available in the us at the moment and not in the uk or in europe as well. Now i think, there's multiple different ways that you could look at this in terms of what the hedges might do, let's start by suggesting that the hedges only cover these legit shorts, these 80 to 100 million shorts, okay, great they've, covered 80 to 100 million shorts, but Then what well, obviously, you've still got this one to 20 billion shorts remaining that as the price of amc, climbs they're going to be losing more and more and more money. Even though these shares are synthetic and they've been created and they're, not real, they have still been entered into the hedges books and the hedges will still lose money on these, as the price of amc goes up and therefore, when those hedges are liquidated, they will also Be forced to cover these synthetic shares as well.

Now you might say well tom what happens if they pretend to cover those legit shorts by actually covering those synthetics? Then they've got you know: 100 million less synthetic shorts, but they've somehow cancelled out all of those legit shorts and report no shortage shares. Even if that's the case. Yes, they're going to be reporting no legit shorts, but they still have between 900 million synthetics to 19.9 billion synthetics left that still need to be covered. So, even if the hedges cover these legit shorts, they're still going to be left with these 1 to 20 billion synthetics and if they cover 100 million of these synthetics and pretend they were legit, shorts and legit shares they've still got 900 million to 19.9 billion.

Synthetics left to cover, i think the important thing to think about is that these are the shorts that are actually illegal. Realistically, it's these synthetic shorts that need to be covered and cancelled, because those are the positions that are illegal to hold with the legit shorts. Yes, you can cover the legit shorts and return the shares to those rightful owners, but with the synthetics they have to be bought back and cancelled. Basically, at the end of the day, we know the hedges have to close out of these synthetics one way or another.

A because they're going to lose lots of money when the price of amc starts to run and b, because these synthetic shorts are illegal to hold. They can technically still hold these legit shorts as long as they like, but realistically it's the synthetics. They do actually need to close. They can't just close these legit shorts and buy back 80 to 100 million shorts and call it a day because they're still gon na be holding these billions and billions of illegal synthetic shorts that have to be covered.

So, in a way, as lou said, regardless as whether you actually hold synthetic shares or you're actually holding legit shares, it doesn't really matter because both of these forms of shorts have to be covered, and at the end of the day, when the hedges get liquidated, they Will be forced to buy back all of these shorts, the synthetic shorts and the legit shorts to fully close out of their position at whatever price you and i will sell them to them now. I also want to talk about why the price of amc at this very moment doesn't matter long story short, it's because, obviously, all of these shorts synthetic or not have to be covered. The only way the hedgies can escape from covering these synthetic shorts and these legit shorts is by seller boxing the company and bankrupting the company and relegating it to the otc markets. So they never have to cover, and the price of amc would trade between 0.1 pence or 0.1 cents and 1 cents a share which obviously isn't going to happen because amc is not going bankrupt, especially with this stellar 2021 that they've just had now ryan said.

I have a feeling they're going to continue shorting amc to a level so low, which will suddenly trigger huge buying pressure from people who recognize a deep discount on this squeeze play, and i guess this also adds to the reason why it doesn't matter what the price Of amc is right: now, a the shorts still have to cover and b the lower. They push the price of amc. The more people are gon na recognize this deep discount and buy more shares, and he suspects. This could also coincide with amc's stellar quarter.

Four earnings and could potentially be the catalyst of the final run up once the shorts last stitch efforts fail and they realize they can't get rid of us, and i also wanted to show you this clip of roaring kitty or dfv, and the post says. Dfe is still as relevant as ever what if the price of amc or gamestop falls, fifty percent it doesn't matter. I mean i i just i just straight up, say it's dangerous to bet on that, the short term stuff one way or the other you got ta. Whatever you got, ta do to to remain emotionally neutral over that short term and there'll be some folks who go.

I don't give a what happens in the short term, oh yeah, but what if it falls 50 next week, i don't give a it doesn't matter. It doesn't matter and, as warren kitty said right there, even if the price of amc, your gamestop, falls by 50, it doesn't matter because the shorts still have to cover and at the end of the day when the market does start to tank, and these short hedge Funds have their portfolios liquidated, they will be forced to buy back and cover those shorts, and, as tony says, this market crash could actually be closer than you even imagined. Tony on twitter said nearly every major index is down a full percent or more crypto is also dumping close to double digit percentages. He said it looks like amc.

Shorts are still scrapping for liquidity and or trying to get balance sheets in order ahead of those evergrande bonds going into full default, and obviously it's not just the evergrande bond. It's also all of those other property developers that still have aaa rated bonds that are suddenly defaulting left right and center, and on top of that, it's also those local government finance vehicles that have issued massive amounts of dollar bonds up to eight trillion dollars worth and Are basically worthless and the average ap has shown a comparison of amc to bitcoin, and he says only one of them is going to see massive upside in the near future. You pick which one back in january, we saw massive massive amounts of profit taking or liquidity taking from bitcoin. Just before the amc in gamestop run up again back in may, bitcoin fell heavily as profits and liquidity were taken to again prepare for the amc run up and over the last few weeks, bitcoin has been dumping consistently down from all-time highs around sixty nine thousand dollars.

All the way now to below forty thousand dollars, which is over a forty percent drop, this to me, seems like it's preparation for the biggest amc run up yet and likely the amc squeeze. Yes, as of the last few weeks, we have seen amc falling as well as bitcoin falling, but i think this is them taking liquidity from bitcoin to try and push amc down as hard as they can to scare out any final paper hands before they run out Of liquidity and before they run out of margin because they've already maxed out their margin and before the next amc run-up, i think, what's been happening over the last month or two in bitcoin, is exactly what happened back in january and back in may. Just on a much larger, extended time scale, because the next run-up of amc is also going to be over a much larger, extended time scale as well. Obviously, the january run up of amc lasted a few days again.

The may june run up of amc also lasted a few days, but i think this run-up of amc is not just gon na last two or three days, but two or three weeks, and maybe even longer guys be sure to. Let me know down in the comments below, if you think it matters whether you hold synthetic shares or real shares. Do you think the hedges have to buy back all real and or synthetic shorts, and as always guys, if you enjoyed this video, be sure to check out some of my others? Alternatively, subscribe to the channel and doing that notification bell, because that way you'll be alerted. When i upload a new video cheers.

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