Today I Want to talk about how a short seller just lost over 9 billion dollars better against certain stocks I Also want to talk about how Michael Lewis the author of the film The Big Short has said in a live interview that he thinks the stock market is a rude game. so stay tuned and let's make some money. And now I'll drive straight in with the key information. So as Zero Hedge tweeted, they've said huge bearish bets gone wrong Cost: Carl I Can nine billion dollars in losses The article says regular readers may recall.

There was a time back in 2016 where Carl Icann emerged as one of the Market's biggest bears warning CNBC that a lot of companies will way overvalued and he was very concerned about the market in the short term. It says: not long after we first reported that the bearish exposure of the billionaires investment vehicle icon Enterprises had gone a record 149. Sure. Now you may be saying Tom How exactly can somebody be 149 Sure: How can you be over 100? Sure? Well, obviously, if you're shorting on Leverage and using other people's money to short, then you can be more than a hundred percent of your own Capital Net Sure.

as we know, hedge funds typically use leverage ratios of between five to one and ten to one. So Carl Icann was obviously shorting with leverage. Therefore, Carl Ican was obviously shorting on Leverage and that's how a short bets went against him So fast and so significantly, it says the Ft has reported that Carl I had admitted he was wrong to make a huge bet that the market would crash after the ill-fated trade. Cost is firm nearly nine billion dollars over roughly six years, according to the Ft.

Icon Enterprises started aggressively betting on a market collapse in the aftermath of the 2008 Financial crisis and became increasingly Bolder in subsequent recent years, he was deploying a complex strategy that involves shorting broad market indices, individual companies and Commercial mortgages and debt Securities too At times, I Can transnational bearish exposure exceeded 15 billion dollars according to regulatory filings? Could you imagine a 15 billion dollar short position restricted to one specific stock like AMC or GameStop for example? And that's why you can see that it's actually very plausible for these hedge funds and market makers that are even bigger than Icon Enterprises to be taking giant short bets on individual, singular companies. And that's why it's not incredibly far-fetched for even single companies like Citadel For example, to be taking short positions on AMC at GameStop ranging into the tens of billions of dollars per position. Importantly, I Can Enterprises report that a total of 4.3 billion dollars in short losses in 2020 and 2021 at a time Carl Icann was likely betting against companies like GameStop and AMC expecting them to fail, but obviously got bit by the meme stock rap it says as I Can short bets were margin called and drained billions of dollars from his investment firm. He plowed nearly four billion dollars of his own money into his company, and that injection helped keep the firms internally calculated.

Investment Portfolio Value relatively stable. And again, that's important because we can see that hedge funds do indeed get margin called on their short positions. These hedge funds don't simply receive a pass. many of them do get a margin called.

Yes, we haven't seen somebody is bigger Citadel Being margin called yet, But obviously as they approach I was throwing closer to that margin called position and fail their margin requirements. They too will be margin called again. I can expose themselves to another Risk by taking out a margin loan that was first disclosed in early 2022. That alone from Morgan Stanley against which I can pledge 60 of his stake in Icann Enterprises as collateral.

So basically, if Carl I Can gets margin called one more time, he's likely going to lose his entire company in the process. And it says again, these margin loans were used for years as the linchpin of the bearish thesis against Tesla. And obviously, when the Tesla stock exploded higher, many of these bears were steamrolled. So again, there's likely multiple hedge funds out there using these same margin loans to try and short AMC and GameStop And when these stocks next explode upwards, the shorts will be steamrolled and margin called.

And I also wanted to show you this video of Michael Lewis saying the stock market is rigged. What's the headline here? Stock market's rigged The United States Stock Market the most iconic Market in in global capitalism is rigged by whom by a combination of the stock exchanges uh, the Big Wall Street Banks and high frequency traders who are the victims. Everybody who has an investment in the stock market the Insiders are able to move faster than you. They're able to see your order and and play it against other orders in ways you don't understand.

They're able to uh, front run your order. What do you mean? Frontline means they're able to identify your desire to to buy uh shares in Microsoft and buy them in front of you and sell them back to you at a higher price. It all happens in infinitesimally small periods of time. So as Michael Lewis says, the stock market is indeed rigged by these high frequency trading firms that not only trade in front of you, but also trade against you in ways that you couldn't imagine Again, Michael Lewis has written all of these books about Wall Street including the big Short and clearly knows what he's talking about.

But interestingly, it seems the Biden Administration is pushing for a freeze on U.S Bank withdrawals. amid the declining M2 money supply. right now, the Biden Administration is literally trying to stop you from taking money out of your bank account to pay your daily or weekly bills. It says hedge Fund manager Hugh Henry has warned that the Biden Administration is mulling a freeze on U.S Bank withdrawals amid the declining M2 Money Supply Mt Money Supply refers to a benchmark measure of how much cash and cash like assets are circulating in the U.S economy.

Obviously, due to the current banking crisis where people are withdrawing money from bank accounts to place in higher interest rate savings accounts or in Money Market funds, it's obviously causing massive issues for these Banks And as a result, the Biden Administration is literally trying to place a withdrawal freeze on all U.S bank accounts. Clearly, the US is in a very dire situation. In this current banking crisis is spiraling out of control. It's now not just impacting small Regional Banks, but also mid-sized Banks and maybe even large institutional Banks And obviously as the current situation and the current economy gets worse, it will lead to the stock market collapsing further, obviously leading to that agency squeeze Because as we saw, more hedge funds like Carl Ican and Carl Icann Enterprises will be receiving margin calls as soon as these hedge funds fail their margin requirements and default on those margin loans.

Effectively, they will be margin called and forced to close out of their long and short positions now. Finally, I Also, want to talk about and try and figure out the real reason behind the allergenic lawsuit. Crystal Ball tweeted saying what was the point of the Blackrock-funded Allergeni lawsuit? The fact that plaintiffs agreed to the settlement is interesting. after accusing Adam Aaron of manipulation.

If they took a major issue with Adam Iron's plans, then why settle for just a few extra shares? Especially because as I'm about to explain the amount of shares that Ali Jenny are getting as a reward doesn't even cover the legal costs they spent he said is the real reason actually to get snapshot or a true share count exposed in court. So Cristobal tweeted him between July 2021 and October 2022 Ali Jenny went through 16 million dollars of cash from BlackRock Alejeni regularly spends hundreds of thousands of dollars on lawyers and on legal advice, and at the moment we'll be spending significantly more. This is obviously just their legal expenditure pre-law suit. so I can only imagine how big their legal expenditure is now during the lawsuit.

Now you may remember ALU Journey has around 0.01 of their total portfolio invested into AMC the total portfolio value of 916 million dollars times 0.01 that's total cash invested into AMC of only around a hundred thousand dollars. Divide that by the current share price which is give or take six dollars, that's only around 15 000 AMC shares that they actually hold. With 15 266 shares, they only receive 2030 five shares as a settlement. 2035 shares multiplied by six dollars.

a share is only a settlement value of around twelve thousand dollars. I Imagine Ali Jenny's legal bills so far from the lawsuit already total into the Millions. So Alex Jenny created this massive lawsuit, spent millions of dollars on legal fees, basically saying that Adam Aaron was destroying the company, only to be perfectly happy to settle for twelve thousand dollars. It seems like they went to some massive massive intentions for such a very small reward.

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