Today I Want to talk about how Citadel could go bankrupt as early as next week? They are actually rescued back in 2020 from a bad Bond trade and Citadel has just placed that exact same Bond trade once again, just this time with even more leverage. So stay tuned and let's make some money now. I'll drive straight in with accumulation. So we know that Citadel has been using leverage and has done since.

Their Inception usually Citadel ranges from between five to one and a seven to one leverage ratio. Now a seven to one leverage ratio is actually very big. so they're taking a 350 billion dollar position. They're doing so with only 50 billion dollars of their own money.

Or let's say they're taking a 3.5 billion dollar short position in AMC. They've only used 500 million dollars of their own cash. The rest of that money is borrowed from Banks and cannot be lost if they start losing that money. so they don't will be margin called.

But it seems that actually some of their trades are on a significantly higher Leverage right shot. Ken Griffin Do we know what he's doing? Do We know his 50-1 leverage on these transactions. So it seems that Ken Griffin's leverage ratio on some of these Bond trades is upwards of 50 to 1 and potentially even higher. And that's why this trade is drawn fresh.

U.S Scrutiny amid the debt Saga Frank Waited saying some hedge funds are exploiting a shadowy trade to cash in on a debt crisis and guess which hedge funds are doing so. This is officials. The SEC and the Federal Reserve have questioned Prime Brokers about leverage trading and government bonds by their fast money clients. It says the dangers have been heightened as political brinkmanship around the debt ceiling has threatened to sink the Us into D4 and unleash chaos in financial markets.

It says several of the hedge funds that have recently pursued the so-called Basis trade were also active in 2020 when the outbreak of the pandemic upended the treasury market and caught them wrong footed until Fed officials intervened to restore normalcy and that list of hedge funds that effectively got rescued back in 2020 by the FED including Citadel Millennium, management and a number of others as well. So it seems that back in 2020, Cedar was taking out this risky Bond trade on Leverage and it got so bad they had to be rescued. and this time Citadel is taking the exact same trade with an even bigger leverage ratio. Using a 50 to 1 leverage ratio basically means if they're taking a 50 billion dollar position, they're only using a billion dollars of their own catch.

That means if their position moves by just two percent, their position gets liquidated. Now in my video the other day, I actually spoke about how the FED is very much concerned about financial stability with these risk traits, especially because the US doesn't even need to really default for the market to crash, just simply a rating downgrade on the US credit rating would do the job. Back in 2011, the market crashed by 18 in just two weeks after Fish downgraded the USA is AAA credit rating and right now in 2023, both Fitch and Moody's have said they've put the US's credit rating on negative watch. Basically saying that not just one ratings agency, but two ratings agencies have said they will drop the US's credit rating in a week or two.

Doing so would obviously cause a 20 stock market crash. it would also up in the treasury market just like back in 2020 and Citadel would also need a rescuer again and could end up going bankrupt as they've taken an even larger position with even more leverage and it says in the event the USD thoughts on some obligations next month. Gary Genser has warned that among many other concerns, Market funding and liquidity would be particularly problematic. Gary Ginsler said that it would be one heck of a mess, and it says this exact same highly leveraged button trade that's become popular with hedge funds is drawing fresh scrutiny three years after it blew up spectacularly.

To me, it seems ridiculous that Citadel has been allowed to place this trade which almost bankrupt can Citadel just three years ago and this time with an even higher leverage ratio. Also, guys, be sure to sign up to me with a sponsor of today's video by signing up using the link in the description below, you can currently get up to 15 free stocks which is worth tons and tons of money. I mean it was also very easy to use. It's incredibly clear and concise, and it's also zero commission for trading.

And that's likely why the Fdds for AMC are so off the scale because Citadel cannot afford to get the Fdds in line as they're so close to their margin limits. As Frank tweeted, he said the average number of failed to delivers per day for April 2023 was 4.6 million ftds on a daily basis. Pretty much every single day in April bar One Singular day was over a million ftds every single day. and on some days we saw upwards of 17 18 million ftds at once.

And as I've said, these ftds will just continue to spiral out of control until these hedge funds end up being marginal, which as I've said, could actually happen a lot sooner than many of us think. if this Bond trade with Citadel goes in the right direction if fiction movies end up dropping the US credit rating so that they will be caught on the wrong side of the bed. and because they're using such a high leverage ratio on this trade and because this trade is so large, it would liquidate Citadel in a matter of just a few days now. I've also warned you a few days ago about those accounts that are trying to convince you that bankruptcy is somehow good for a short squeeze.

River Skywalker is tweeted saying that Bed Bath and Beyond is up about 500. Since they were delisted from the New York Stock Exchange and the NASDAQ. he said the daily Returns on Bed Bath and Beyond are amazing but meanwhile AMC and GameStop are red. he said Bed Bath and Beyond is the first meme stock to go.

OTC With retail still buying up and holding, he said I bet short hedge funds thought that once it went OTC retail would leave. Instead, the Reddit Subs are all on this. Now this is something I want you to be really, really careful of. Yes, Bed Bath and Beyond has been delisted And yes, it has increased 500 over the last few days.

it's increased from two cents per share to 8 cents per share. Now that is definitely not what I class as a short squeeze. You can see here from the chart. the Bed Bath and Beyond deal increase from 24 cents per share up to 56 cents per share, but has since Fallen all the way down to eight cents per share.

Now while that is an increase, it's a very, very small increase. I Think if we wanted to see a short squeeze in Bed Bath and Beyond, we'd basically need to see something like this green line we can see back in 2021 Bed Bath and Beyond hit high of around fifty dollars per share. I think for Bed, Bath and Beyond to realistically squeeze and experience the mother of all short squeezes, it would need to squeeze back to at least fifty dollars per share. I Think if it slows up to fifty dollars per share, that's just the start of a short squeeze for Bed Bath and Beyond.

Really, you need to see it going much higher. but right now Bed Bath and Beyond is currently trading at just eight cents per share. Therefore, don't get it confused. while Bed Bath and Beyond has experienced a 500 increase, it's still down like 99.999 and therefore bankruptcy is definitely not good for a stock like AMC or for GameStop I.

Also, Imagine Because the stock is listed on the OTC market, but it's significantly more difficult for retail investors to access as you can only access OTC stocks from certain platforms now. I Also saw this really interesting tweet from Trend Griffin about Tire Globe Management: You know, the hedge fund that was down at over 50 last year alone. It was just saying that Tiger put together a basket of assets and asked buyers to submit bids to buy those assets from them. However, a lead buyer didn't immediately emerge, almost as if buyers aren't interested in this sketchy basket of assets that Tiger is trying to afloat.

I Wonder if Tiger Global Management copied the same trades that Archaeos Capital Management did so and also took out sketchy short positions on GameStop and AMC as well. And that's why their fund was down so much for last year because those borrowing fees ate away any profits they were making elsewhere. and obviously bad trades on The Wider Market elsewhere all the way into previous profits. And that's why the fund was down so significantly.

And it says, after a year-long buying spray in the VC Market tiger Global Management has been playing the role of seller in recent months. This is the New York-based crossover investor has hired Evercore to shop a so-called strip sale in the secondary Market to liquidate a curated portfolio of mid and late stay VC back companies The Firm hopes to sell interests in its private Holdings to return some liquidity to the hedge fund. Again, it's just another one of those hedge funds that are struggling significantly in this current market and are obviously are reaching that Margin Call position. That's why Thai Global is trying to offload these assets to get some cash back into the fund to meet and maintain margin requirements.

And obviously, if they can't do so, that'll just be another hedge fund that adds to the pile of bankruptcies. Which again, obviously, if Citadel ends up getting margin called on this large Bond Position will end up increasing that pulse significantly. If the credit rating of the US does get dropped, the stock market crashes and Citadel do end up exploding I Imagine we'd see tons of other hedge funds following Sue as well and going bankrupt alongside Citadel and at the same time, we'd also see AMC squeezing as all of these hedge funds including Citadel would be forced to close out of their short positions. And as I mentioned in my video yesterday, it's not the Hedge fund all those investors they get to choose when and where positions are covered.

they're closed out of by the margin clerk all at once. and doing so would cause a ripping mother of all short squeezes in the AMC and GameStop stocks. 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 Bell because that way you'll be alerted when I put a new video.

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