Today I Want to talk about how short hedge funds are finally starting to collapse? The first domino in a long line of dominoes has just fallen and this will lead to multiple waves of liquidations over the next few weeks and the next few months as the banking crisis continues leading to the AMC squeeze. So stay tuned and let's make some money. and now I'll dive straight in with accumulation. So as the French ape tweeted, he said little players or little hedge funds that shorted AMC over the last year or two felt strong because they had big players and big banks on their side.

Credit Suisse was one of the biggest AMC dartboard players, but now that everything is collapsing, you're soon going to see these rats starting to jump aboard and more of these smaller hedge funds collapsing fund after fund. What we've just seen over the last few days is: Alan Leverson's fund going bankrupt now Alan Had a tweet pinned to his profile since last year. His tweet said that his top stock recommendation is the short and hold a short position on AMC Therefore, Alan clearly had a short hedge fund that was either directly or indirectly shorting AMC and GameStop But as I said, we've just seen that Adam Levinson is now shutting down its hedge fund which was worth billions after being hit by losses amid ongoing bond market volatility. Adam has obviously suffered such a significant loss over the last few days and the last few weeks, he's had to close his hedge fund which was once at its peak worth billions of dollars.

And as I say, this fund was obviously a short selling fund as he said that his top stock recommendation was to short AMC whether Alan was or wasn't shorting AMC at the time of his bankruptcy either directly or indirectly I Don't know. Therefore, I don't know whether he has a large or a small short position to liquidate. but what I do know is that these short hedge funds are finally starting to collapse. And on top of that, as Special Situations tweeted, they said breaking news: a 4.5 billion hedge fund at its peak collapsed and closed due to rate volatility after the Silicon Valley Bank receivership and you may have also seen that shareholders have just announced a lawsuit against Credit Suisse over their finances and controls.

And as Darren Harper tweeted, he said maybe a lawsuit will finally reveal the contents of all of Credit Suisse's swaps. Obviously, if Credit Suisse is being sued for their finances, they will have to present all relevant financial information which could contain details of these Total return swaps and giant short positions which could also be made public for all to see. They may be saying Tom does Credit Suisse still have these large short positions and these large Total return swaps or have they passed them on to another hedge fund, another Market maker, or another major bank. And if they happen, what's going to happen to those short positions as a result of the UBS acquisition? Well, I think the first part of that question I can answer now and the second part I'm going to answer in my video later today later today I'm going to explain exactly what happens to Credit Suisse short positions and their Total return swaps.

Will they be closed out of? or will they transfer to the next hedge fund or the next Market Maker or the next major Bank AKA UBS But for the first half of that question, I Do think the Credit Suisse absolutely still holds these large toxic positions because of how much support UBS needed to make the deal. Also guys, if you haven't already, be sure to join me over our moon with a sponsor of today's video by signing up using the link in the description below. you can currently get 17 free shares entirely commission free trading Free level 2 Market data and most importantly of all, MooMoo is very easy to use. They've got tons of technical indicators and advanced charting tools, and with Mumu you've also got entirely free 24 7 customer support and you can also trade around the clock with full extended trading hours.

So obviously UBS paid three billion dollars for Credit Suisse All in all and also got government guarantees for nine billion dollars. That effectively makes Credit Suisse worth negative Six billion dollars UBS Effectively had to be given six billion dollars to acquire Credit Suisse Ignatius Tweet is saying: in other words, the government paid UBS 6 billion Dollars to take over Credit Suisse And obviously on top of that, when you add in this 17 billion dollars worth of bond liabilities that have now been written down to zero, the government effectively gave UBS nearly a 23 billion leeway. And as Ignatius said, clearly, there must be something horrific in the Credit Suisse books if UBS effectively had to be given 23 billion dollars to support the Takeover of Credit Suisse Clearly, they're expecting a 23 billion dollar loss to come over the next few weeks or the next few months. and I think 23 billion dollars would be a fairly decently sized AMC or GameStop squeeze So becomes tweeted He said, man, this must be worse than I thought because it's currently all hands on deck.

because the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve and the Swiss National Bank have just created a coordinated Central Bank action to enhance the provisions of US dollar liquidity. These central banks are effectively created combined. what could be a giant facility for US dollar swaps. That means all of these countries all of these major Banks can swap currency into bank to US Dollars very quickly at a very low rate.

It also means they may even be able to swap Securities positions or Bond positions or any other kind of asset sets directly for US Dollars. It clearly shows that all of these central banks are desperate to try and keep the financial system afloat because as Jim Bianco tweeted, he said, hold hands in financial markets know what happens when trading lines start getting pulled. Obviously, we saw four separate Banks refusing to do business with Credit Suisse and a few days later Credit Suisse obviously collapsed. Therefore, these central banks is trying all they can to keep the credit Market moving and to keep all of these Banks doing business with each other.

But obviously as more and more Banks start to freeze up, it will mean smaller hedge funds become more and more panicked and obviously close out of their short positions. And as Crystal Ball tweeted, it's really interesting to see all of those anti-market Hedges currently doing very, very well other than at the moment AMC at GameStop Obviously, Bitcoin has been going crazy in reaction to the current banking crisis and gold is also up to almost two thousand dollars per ounce. I I Said at the very start in November or December of 2021 when the market starts going crazy and effectively it's collapsing, we're going to see Bitcoin We're going to see gold, We're going to see AMC and we're going to see GameStop all performing inversely to the market. We're already seeing Bitcoin and gold performing inversely as they're starting to run up as the market is going haywire.

But obviously I think the position that is likely to do the most damage to these hedge funds and to these market makers is obviously AMC at GameStop and therefore they're currently still trying to suppress. But as Crystal Ball added, he said it sucks about the Ali Jenny lawsuit delay. He said it would be interesting to see how AMC would be doing if it had already converted and had already gone through the reverse split I think at that point there wouldn't be anything left to suppress AMC and GameStop and the two stocks will be going absolutely wild. I Think what we just need to see is the market collapsing even more Bitcoin and gold going even more crazy.

and then finally, these market makers and these hedge funds will lose control. And as Kongs tweeted, he said the regional banks are finally starting to blame the short Sellers and he said it's not a good sign for the market, but it is a good sight for us If these short sellers are now too preoccupied shorting Banks and they're taking over leveraged positions. It just means they're potentially even closer to being liquidated and that is why it's Biotech moves tweeted ishwin Ape was a brilliant tactic by Adam Arrow because it makes Shorts 40 times more difficult to cover because synthetic short holders must Now cover that fake share and buy a real share to replace that fake share they sold into the market. and synthetics must be replaced on both AMC and the Ape site as well.

And therefore short, as are four times more short Bookers of Ape and therefore the 10 for One reverse split makes the situation even worse for Shorts as AMC shares will be 10 times harder to find and a more expensive price and their four real shares held prior to the boat on our 40 times more scarce and that's why a scavenger tweeted he said. it makes me laugh when people say that Adam Aaron is trying to bankrupt AMC because you just sound stupid and that's because just stepping into the popcorn industry and into the credit card industry as well, just enter the AMC into potentially earning billions of dollars in new revenue streams, especially if AMC can make mergers happen later on in the year and bring even more kinds of shows to AMC theaters that would obviously give them a huge Equity injection and would also open the doors again to billions of dollars in new Revenue. It effectively makes AMC unsuitable and it also means that shorts are much harder to cover as the shares are so much more scarce. But guys, be sure to let me know what you think down in the comments below.

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