Today I Want to talk about how Citadel have been hiding their true short position? You may remember that said that I was security sold and not yet purchased had appeared to have decreased, but Biotechnose has done some insane due diligence to prove that actually that isn't the case. and it said that there was liabilities of actually been getting even larger. So stay tuned. Then let's make some money.

And now I'm gonna go straight in with the key information. So I Want to start by reading through the due diligence and reading through exactly what's happened, but it might get a bit confusing. So I'm going to make sure to explain it really, really simply after we've gone through the numbers. So over the last four or five years Citadel security sold and not yet purchased have been increasing significantly.

In 2018, it was 22 billion 2019, that jumped up to 25 billion. In 2020, that rocketed to 57 billion, and in 2021, that shot to 65 billion. Now as of 2022, it appeared this number had reduced from 65 billion down to around 45 billion. But as I said biotechnosis proved that actually it's even increased up to 83 billion, significantly higher than it was back in 2021..

now, as a quick reminder of exactly what security sold and not yet purchased actually are, they're effectively synthetic shares. now. These synthetics are created in two separate ways. Number one: you have the synthetic created when a hedge fund or short seller.

Once, the short sell shares of AMC but Citadel can't locate any. Therefore, they simply create a fake share for that hedge fund to shore into the market. Somehow that's allowed an exempt under their bonus Five Market maker exemption which is absolute rubbish. but you also have synthetic shares created on the other side of the trade when regular Apes like you and I want to buy shares of agency.

Obviously, there's no shares left available for sale because apes are holding all of their shares. But if you and I place a buy order, they somehow use their infinite liquidity machine to fulfill our buy orders by creating additional synthetic shares for us to buy now. Citadel Have been trying to say this number of synthetic shares had reduced significantly from 2021 down from 65 billion dollars worth of synthetics down to 45 billion. But as we can see from this due diligence, they'd actually been hiding around 35 to 40 billion dollars worth of synthetics.

and the true number is actually 83.28 billion. Now, this paragraph here says that reverse Reaper agreements and Reaper Agreements are collateralized primarily by receiving or pledging. Securities Typically the company has rights of agree hypothecation with respect to the Securities collateral received under those reverse repo agreements. Also, the counterparty generally also has rights of rehypothecation with respect to the Securities collateral received from the company under regular Reaper agreements And as of December 31st, 2022, substantially all Securities collateral received under repo agreements and reversary per agreements had been re-pledged Now, what that basically means is they've split their synthetic shares down into three separate categories.

So you have Securities that have been sold but not yet purchased. Then you also have Securities that have been pledged and re-pledged AKA given to somebody else but also not yet purchased. So in the repo and reverse repo facilities, Citadel receives pledged assets and then goes on to re-pledge them or give them to somebody else. And they also pledge Securities themselves again by giving those Securities to somebody else as well.

So basically as part of a repo reverse repo transaction, if if one of these hedge funds gives Citadel back their synthetic shares, Citadel can take those synthetic shares and re-lend them or re-hypothecate or re-pledge them to somebody else. And we also know from this last line that substantially all Securities collateral received under repo and reverse repo agreements had been replenged. And as of December 31st, 2022, the fair value of Securities collateral received under those reverse repo agreements was 17.7 billion dollars. and the fair value of Securities collateral pledged for regular Reaper agreements was 19.7 billion.

So basically Citadel is being given synthetic shares as collateral and is then re-lending out those exact same synthetic shares to be shorted over again. So if you run the math and take the 45 billion dollars worth of security sold but not yet purchased and the 17.7 billion and 19.7 billion dollars in synthetic shares that have effectively been re-lent out, that's 83b million dollars total. So basically Citadel's unpurchased liabilities AK Securities that have been sold or re-pledged or pledged again without ever being purchased is still steadily increasing. Now, somebody else that has a liability position that is way too high is JP Morgan As Alastair tweeted, he said JP Morgan's massive gold derivative short position may be larger than the bank's assets.

He says today, one of the top money managers in the World award that JP Morgan's gold derivative short position may be larger than all of the bank's assets. He then pondered the ramifications for JP Morgan if the price of gold shoots up a thousand dollars Dr Stefan Lee Posted saying what I lose sleep over is how much exposure does a bank like JP Morgan have to the gold derivatives Market We know that JP Morgan has been caught and fined many times for manipulating the precious metals market and is therefore clearly very Overexposed He thinks that JP Morgan's gold short position is larger than the bank's total assets and therefore if the price of gold shoots up by a thousand dollars and JPMorgan takes a 50 loss or a hundred percent loss, the bank could end up going bankrupt. Now speaking of those complex derivatives and complex short positions, Elon Musk Actually spoke about complex derivatives last year. Now this kind of adds to my video from yesterday.

Elon Musk Previously said that too often sophisticated Hedge funds have used Short Selling and complex derivatives to take advantage of small investors. He said they'll short a company, conduct a negative publicity campaign to drive the stock price down temporarily and then cash out and then do it all over again many, many times. and he said the term for this, as you may be aware, is short and historic. Clearly, Elon Musk has voiced his dislike for short sellers many, many times, and it's great to have Elon Musk on the same site as us.

But I also wanted to touch on this short and distort campaign because we know that it's something that happens on AMC every single day. It's okay, as tweet is saying, they've just done their quarterly, go through my old posts and see what the AMC Spambot accounts look like. Now, they've said a lot of these accounts have either been suspended, deleted, or have been repurposed into Political propaganda accounts and they said I suggest you all take a look yourselves at your old posts, especially Adam Aaron's old posts as well. They said I use a burner account to follow the really suspicious accounts I see and they said in 90 of the time, within three to six months, most of those accounts are repurposed or suspended now.

I Wanted to bring this up because I know there's tons of fun comments in my comments section of YouTube There's tons of either spam bot spanning absolute rubbish, trying to convince you to sign up to some telegram group or give them all your cryptocurrency. but there's also tons of people down there that are creating and spreading fud and bashing aim. C Obviously I personally ignore all of those five comments, but I have seen, especially over the last three months or so. The number of thud comments and the number of thud being created and spread on AMC has absolutely multiplied now.

Obviously, we said two years ago, this was bound to happen. They're going to try all they possibly can to spread more and more fuds and shorten the store. AMC So I Guess what I'm encouraging you to do is not even necessarily to listen to me, but to perform your own due diligence and read for yourself and make up your own mind about AMC Not to follow what I Say not to follow what other YouTubers Say not to follow what people on Twitter Say not to follow what's said in the comments down below, but to make up your own mind and something interesting I Did want to point out as Amca tweeted the short interest frame Sees At an all-time high and the cost to borrow is rocketing back up Again, no longer is a short interest on free float around 20 or 19 or 18 of the flow. It's now around 25 with 130 million shares shorted legally.

So that's a quarter of the entire float being legally shorted. Well, we've also got a cost to borrow average fee of 676 percent being paid on those short positions and a cost to borrow maximum of a thousand percent. That means these shorts are paying 10 times their annual position each and every year just to continue shorting. AMC And as I've spoken about before, I expect this number to continue increasing and I expect these shorts to continue paying more and more and more money.

so continue shorting. It will get to the point when they end up blowing their entire fund on these short fees for their AMC short position and the fund is forced to close down and they're forced to close out of their shorts. You may say? Well, Tom Surely that's going to take ages, but even if they're shorting AMC with only 10 of their entire font size, that still means the fund will be gone in 12 months time. Speaking of funds or Ponzi schemes that would likely be gone in 12 months time, check out this tweet about Robin Hood So Robin Hood is posted disagreeing with the SEC and effectively siding with Citadel on the new SEC proposed rules.

Robin Hood has posted, saying the SEC has proposed rules that would turn back the clock fundamentally and negatively changing the way retail investors stock trades are executed. and they've said at Robinhood there are no wealth or income barriers to opening a brokerage account and they've said the cost of trading has never been lower. Basically, Robin Hood is siding with Citadel and does not want the SEC to change their rules, likely around payment for order flow and other rules proposed because somehow it would make it more difficult for us, the retail investors to invest. But as Bigam's tweeted, he said it's more likely that Robin Hood would end up going under because Robin Hood is effectively a Ponzi scheme.

and if the SEC did change their rules, this would expose it. Robin Hood As a company obviously doesn't make any money from being a stock trading platform, they clearly obviously are making massive, massive losses because of all their new developments and all the employees they've hired. The only way Robin Hood actually gets money in the door is through payment for order flow, basically selling their customer data directly to Citadel I. Think if Robin Hood is siding with Citadel and they both want to oppose these new SEC rules, I think clearly.

these SEC rules are a brilliant idea and would likely end up with Robin Hood going bankrupt and Citadel struggling more and more. And the reason that Citadel would be struggling more and more is because they wouldn't have that advantage over retail investors by seeing all of their investing data. If Citadel can no longer front run the Robin Hood customers, Cidel loses their Edge and stops making more money. But guys, be sure to let me know what you think down in the comments below.

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