Welcome back to the channel everyone today i want to talk about how citadel just recalled the melvin loan and how we're now in the end game, so stay tuned and let's make some money, but again, like i did earlier today. I want to hold another moment's silence for what's currently going on over in ukraine. As i said earlier, i'm not going to sit here in silence in the video for an entire minute, but i do encourage you to pause the video and take a moment silence. But now i want to dive straight in with the key information.

So citadel is pulling their 2 billion loan from melvin capital after bailing it out back in january of 2021, as it was caught short and suffered financial losses of 3 billion dollars. Rizzo says ken griffin needs liquidity due to the incoming margin calls and the impending market crash so market watching a number of different news sources have posted an article saying citadel is further pairing back its 2 billion melvin investment. It says citadel is further pairing back its 2 billion dollar investment in melvin capital management after the hedge fund stumbled in its effort to recover from a near collapse triggered by surges in gamestop and other meme stocks early last year, citadel in late january 2022. As in a few weeks ago, asked to redeem half the money, the firm and its partners have left in melvin's hedge fund after originally halving their investment late last year, and this is because melvin again racked up double-digit losses for the 2nd january in a row.

People familiar with the mata said, obviously citadel invested 2 billion in melvin in january 2021, alongside a 750 million dollar influx from steve cohen's .72 asset management. This is obviously in exchange for a share of melvin's fees or a share in melbourne's revenue over the next three years, but it seems that citadel has basically pulled out its entire investment because obviously citadel is desperate for liquidity. It says the rare intra-month investment made in january 2021, made as the 12.5 billion hedge fund was suffering, mounting, losses from the ferocious meme stock rally enabled melvin to reduce its leverage and avoid being a forced seller, as in avoid being liquidated. Now we know that melvin was worth 12.5 billion dollars in december of 2020.

last year in 2021, melvin lost over 30 of his fund and in january 2022 lost another 20. On top of that and again coming out of, that is citadel's 2 billion dollar investment or the first billion it withdrew last year and now an additional 500 million - and this just clearly shows that ken griffin and citadel are desperate for liquidity. Ken griffin previously called gabe plotkin one of the most incredible investors. If ken griffin wasn't desperate for cash, he would leave his investment in melvin and collect those fees over a number of years.

But because ken griffin is absolutely desperate, he's pulling his investment out now because he needs the cash and he's forfeiting any future profits. Now i think, on top of this there's a number of things that show that we are absolutely in the end game and ready for the squeeze, obviously, on the right hand, side of the screen. Here we have the volkswagen chart back in 2008. Obviously, the volkswagen stock started running up, but then crashed back to its original level before squeezing.

Obviously, this squeeze was right at the time of the global 2008 recession, and now the amc chart is lining up practically perfectly. I think amc may end up falling slightly more back down to the five to ten dollar region before squeezing during the coming recession. Now, obviously, we know about the current invasion and we know how much the russian stock market has been crashing, and we know what happened to the s p 500. Today in the pre-market before the s p started clawing back its gains.

I am going to cover this later on in the video, but for the moment i just wanted to show you how perfectly the amc graph is setting up compared to the volkswagen char. Now, on top of this hangars tweeted saying, look at this 56 cent spread going on with gamestop this morning. Typically, the gamestop stock has a very, very small, spread of only a singular cent between the bid and the ask. Obviously, stocks that have tons and tons of liquidity have a very, very tight spread, and this just goes to show the gamestop liquidity is absolutely running out.

Hang loose says: this is definitely not normal and there's a huge lack of liquidity. This could bring about big price swings and volatility to the gamestop stock. When there's very, very little liquidity, it doesn't take much to move the market in very, very large chunks. One singular trade here could move the gamestop stock around 50 cents.

Therefore, when there is very, very thin, liquidity and the market starts crashing, and these hedge funds are forced to cover their shorts, they'll, be forced to buy back tons and tons of shares, which will move the market for amc and gamestop massively in a very very short Period of time, and with very very few shares, purchased guys if you're getting a little bit worried holding your amc, infidelity or an e-trade due to all the recent glitches and the fact that fidelity actually supports short sellers mumu currently buying you. A free share of amc. On top of their usual five free shares, when you sign up to moomoo using the link in the description below and make your first deposit, when you sign up to mumu and make your first deposit, you get two free shares valid for the 3 500 each. If you can deposit a hundred dollars, then you also get this free share of amc bought specifically for you and guys.

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Now. Interestingly, this isn't the only thing that shows that we're in the end game, we know the department of justice are performing an investigation into a number of different short sellers like muddy waters, citroen research, melbourne capital and now cinderella as well. Over the last few days, we've also seen a number of mainstream media personnel, like jim cramer and charles gasparino, going on a massive tweet deletion spree. We also saw the motley full mass deleting articles and, interestingly, it now seems like the motley fool, is being investigated by the department of justice.

Now there is a bit of a trust me bro source here, because crystal ball says it's according to his sources. He can't reveal more, unfortunately, or confirm the veracity of it, but he has no reason to doubt if it's true now. Obviously that is very trust. Me bro, but it wouldn't surprise me if motley fall is now being directly investigated and directly roped in to this department of justice, short seller investigation.

The motley pool have obviously aided these short sellers by publishing the hit pieces. It isn't citadel that publishes the hit pieces directly on their website. It isn't melvin capital, publishing news articles on their website, they're. Obviously interesting firms like the motley fool and cnbc to publish their fud for them and therefore, not only did the department of justice need to investigate the short sellers like melvin capital and citadel, but they need to investigate the news firms publishing the hit pieces, like the Motley fall and cnbc as well, and therefore it really wouldn't surprise me if people like jim cramer, charles gasparino and now the motley pool have been roped in directly to this department of justice investigation, and i think this overall investigation just shows that we are absolutely in The end game as the doj is going to come down like a sack of bricks on top of these short hedge funds.

Now, obviously, the current manipulation of gamestop and amc is obvious, but now it's just getting more obvious by the day. Obviously, for the last week or two amc has had a 100 utilization rate and nate tweeted said i'm no mathematician wait hang on. Yes, i am. How can you have a hundred percent utilization for a stock for either two or three weeks and still short a stock over 568 million shares? If you total up the reported short volume over the last few weeks, we can see that 568 million shares of amc have been shorted all while amc has been 100 utilized.

Now i did see a comment that when a stock is 100 utilized, it's not necessarily zero percent utilized. It may be ninety nine point: nine percent utilized that's been rounded up now. Obviously, with that point, one shares that is still around ten thousand shares that could be traded between two individual hedge funds and therefore this total reported short volume could just be the back and forth of 10 000 shares. Now, if that is the case, it just goes to show the pure level of desperation that these hedge funds are taking.

It would be literally two hedge funds, passing 10 000 shares back and forth. That is obviously a very, very small amount of shares that they're having to pass back and forth thousands and thousands of times in order to crush the price of amc further, but at the end of the day, they're not going to be the ones benefiting from it. They still have to pay the transaction fees to the stock exchange and also potential additional fees to the other hedge fund to take on a risk as well and therefore, each time they pass this small basket of shares back and forth. It costs them more and more money, and this is exactly why citadel is desperate for liquidity, because they're running out of cash and they can't kick the can for much longer now.

Obviously, i don't want to talk about the current invasion from a political standpoint, but what i do want to do is talk about it from a current market integrity standpoint. This morning, russia's stock market lost nearly 40 percent of its value and, at one point, was down nearly 45. It's one of the biggest single day meltdowns in modern market history. Again, this is only going to impact the wider markets around the world across europe across the uk and across the us, as well as this invasion becomes more and more serious and, as other countries start sending in troops over to the ukraine, this is only going to Ripple around the world and impact the u.s exchange as well.

Now, if the russian exchange should lose nearly 40 percent of its value in a single day, can you just imagine what would happen if the s p 500 halved by tomorrow morning? This would cause tons and tons of stocks across the market to decline massively in value which would cause many many hedge funds, including those short hedge funds, to be liquidated, which would definitely cause the amc squeeze. In fact, the current russian stock market collapse is so bad that the russian central bank has had to step in to prop up the ruble and avert an entire market collapse. The russian ruble just hit an all-time low and the central bank has had to step in to prevent a financial system meltdown. I think this goes to show exactly what's to come, for not only the u.s market but likely for the uk and european markets as well.

Now i also want to talk about what we've seen in the s p 500. Today this morning, the s p 500 opened up at a new recent low down around 410. This obviously took out the january lows and also the recent october lows as well, but, interestingly, throughout the day, the s p 500 has recovered massively being at one point down nearly three percent and now up around 1.5 percent on the day. This is a massive massive shift in the s p 500, and i don't quite think it grasps the severity of what's currently going on.

I think at the moment what's currently going on is between russia and ukraine, but if european countries, the uk or america decide to help out, then i think this could get much much worse for the wider us markets. I think overnight, as this whole thing develops, the s p 500 is likely to reverse and tomorrow will likely fall. Obviously i don't quite know exactly what level the s p 500 is going to open and close at tomorrow, but i do imagine that tomorrow will be a red day, guys be sure to. Let me know down in the comments below what you think about citadel recalling the melvin loan and whether you think we are currently in the end game and as always guys, if you enjoyed this video, be sure to check out some of my others.

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