Today I Want to talk about how FTX has been creating and harboring a legal synthetic AMC shares and I Also want to talk about how the downfall of FTX is going to be very stressful for these hedge funds, especially for Citadel. So stay tuned and let's make some money. And now that I've straight in on the key information. so I Want to start by giving a brief overview of exactly what's happened to FTX over the last few days and how they got into this mess in the first place. So, FDX was the third largest crypto exchange behind Binance and Coinbase. Some sources say it was the fourth, some sources said it was the second, but basically it was a very large crypto exchange. and it's transpired the CEO and owner of FDX SPF or Sandbankment Freed had been lending out consumer deposits to his related Investment Company I'll made a research. It's speculated around four billion was originally lent to our media research, although it could be much larger for investment and bailout purposes. Obviously, FDX bailed out Voyager digital. They bailed out block Five, both for 500 or 600 million dollars, and also invested into Robin Hood which was around 700 million. and they've also got tons of previous Investments as well. Over the last few weeks, Almeda research had to take some significant write Downs on those Investments and therefore Sandbankment Free transferred an additional four billion dollars, although again, it could be much more into our media research to keep them solvent. So that means Sandbankment Freed has transferred 10 billion dollars of consumer funds in 12 meter research to fund their Investments Again, it could be much larger. I've seen rumors of 15 billion and even as high as 20 billion now. Over the last few days, the largest exchange which is Binance decided to dump billions of dollars worth of Ftt token which is the native cryptocurrency of FTX onto the market. Couple that with investor Panic ended up crushing the token and basically liquidating FTX as a company now as they use 10 to 20 billion dollars of consumer funds for external Investments There ended up being a run on FTX and the company ended up closing down and as unusual, Wells has tweeted FTX is now seeking emergency funding to meet withdrawal requests, saying it has a shortfall of 8 billion dollars. Now that means that eight billion dollars that was deposited onto the FTX platform has effectively disappeared FTX used that money for external investments in companies like Robinhood Blockfi and other Us as Peak FDX was valued at 32 billion dollars now. tons of this capital and tons of this original investment came from many hedge funds and private Equity companies. Two of the largest investors were two of the largest contributors to FTX was Paradigm and Capital and at Hang Loose tweeted Citadel sold a huge stake in their business to both Sequoia Capital and Paradigm as well. These private Equity companies have likely taken a massive hit to their portfolio and will need to reshuffle their portfolio, potentially redeeming some Investments Like this investment in Citadel Paradigm and Socoa may end up asking Ken Griffin for their entire 1.15 billion dollar investment into Citadel back so they can rebalance their Investments. Now, the main downside for Ken Griffin and Citadel is that he has to find a billion dollars in cash to pay back to them again. Ken Griffin is likely already facing liquidity issues of his own, let alone having to find a billion dollars in cash to pay back to these investors. And that's why Chris believes that FTX in 2022 could potentially be bear Stearns in 2008. he said the other shoe has yet to drop. Chris is basically saying that FTX could be the Catalyst that ends up sparking the all-out market crash and crypto crash as well as a result, Bitcoin fell overnight from around nineteen thousand dollars all the way to 15.6 K and actually at some points even Below On top of this, the full extent of the FTX collapse hasn't even yet been realized. There's likely many other private Equity firms and potentially cryptocurrencies themselves that were invested into FTX or invested into the FTX platform. There's likely going to be a number of hedge funds and potential Ponzi schemes coming out of the woodwork over the next week or two when they realize they've effectively been liquidated and this has also caused a massive crash in the available liquidity for Bitcoin As cat Striker tweeted, she said wow, I Think certain people AKA Hedge funds are in desperate need for liquidity Crypto Obviously, along with these, Chinese IPOs has been used as a way for these hedge funds and market makers to generate liquidity when needed. When AMC apron GameStop have been running up these hedge funds are market makers have pumped these Chinese IPOs and cryptocurrencies to generate additional liquidity to temporarily avoid margin calls. But now these Chinese IPOs have been suspended and Bitcoin and many other cryptocurrencies out there right now are crashing also. just a quick one. If you haven't already, be sure to join the free Discord Linked In the description below. We've got three 1348 indicators and we talk about AMC and share due diligence all day long and also be sure to join MooMoo right now Linked In The description below. You can currently get ten dollars absolutely free and 15 free shares on top of that worth up to two thousand dollars each, a total of up to thirty thousand dollars. And as a result, that is causing these hedge funds and these shorts to panic. And that's why we're seeing a massive spike in the AMC cost bar race. We're now currently seeing a cost to borrow average of 62.33 and a cost to borrow a maximum of 111. This isn't that one or two percent cost to borrow rate. This isn't even five or ten percent cost to borrow. This isn't even 20 or 30 cost to borrow. This is 62.33 As an average. That means on a yearly basis, these shorts are paying 62 of their current total short position solely in interest costs at a time when the market is crashing and many of these hedge funds are already struggling for liquidity, An unusually tweeted asking if these hedge funds had run out of Firepower as yesterday AMC and a put barcoding three significant portion of time and he tweeted saying like I said, there's only so much they can short before it becomes unprofitable and pointless as I've also said whether AMC is at five dollars or four dollars or six dollars, these shorts that have been shorting AMC down from 60 and 70 really don't benefit at all. A very small one or two percent increase on their entire short position really doesn't make much difference right now because AMC is barely moving between six five and four dollars, which is nothing compared to sixty or seventy dollars. It's practically unprofitable and pointless for these shorts to continue shorting. and he tweeted saying they're barcoding AMC and eight for sure because they're running out of juice. Hang loose. Tweet the chart for AMC which clearly shows a massive amount of barcoding on the AMC stock. ape has looked very similar to this for the last few days. This is obviously fake liquidity being generated by these high frequency trading algorithms because there's very low liquidity in the overall Ape and AMC markets because obviously retail investors aren't selling. And Jimmy Jab has tweeted The Smoking Gun ever evidence of AMC synthetic shares He tweets saying CM Equity is required to hold 400 million shares of AMC to back the AMC FTX tokenite stock and he said I'm betting they don't hold 400 million AMC shares because if they somehow do hold 400 million real authentic AMC shares, then what the hell have we been buying? This document here explains exactly what tokenai stocks actually are. It says equities are stocks that trade on traditional regulated exchanges. FTX lists tokens on select equities and it says these spot tokens are backed by shares of stock custody by CM Equity they can be redeemed with CM equity for the underlying shares if desired, and therefore CM Equity needs to have shares to back each token with a one-to-one ratio of one token for everyone at AMC stock And right now, 400 million AMC tokens are currently existent on FTX with a market cap of 15 0.17 billion dollars. Soraya Now CM Equity is supposed to hold 400 million Real AMC shares, which they obviously don't because we hold 80 or 90 or 95 of the AMC flow. they are legally required to hold 400 million AMC shares and therefore they're likely just holding 400 million AMC synthetics. But obviously these tokenized stocks are listed and are created on the FTX platform which has now just gone bankrupt and therefore, it's likely these 400 million synthetic AMC shares will need to be canceled or will need to be closed out of when FTX falls down now. I Think all of this together is a very big deal. You've got FCX a giant crypto platform going down which is obviously going to drop the price of Bitcoin and all other cryptocurrencies again, causing these hedge funds to struggle to meet their margin requirements. They're going to lose hundreds of millions of dollars if not billions of dollars over the next few days and have already lost hundreds of Millions, if not billions. On top of that, we're going to see private Equity companies and hedge funds that have invested into FTX and any of their related counterparties or any of the companies that have also invested into FTX. They're going to lose tons of money and they are going to struggle and they may end up redeeming even more of their investments in companies like Citadel or potentially other hedge funds and market makers. And we're also going to see those FTX tokenized Securities going crazy which they already have as they've been flying through the roof as a result of the FTX platform collapsing and again, we're potentially also going to see CM Equity have to close out of those 400 million synthetic shares as the tokenized stocks no longer exist which again may end up causing the squeeze. 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 upload a new video! Cheers.