Welcome back to channel everyone today, i want to explain how citadel has over 63.8 billion dollars worth of synthetic shorts, but also how investors are withdrawing over 7.5 billion dollars of investment funds. Trust me guys. This is a big one, so stay tuned and let's make some money, and now i'm gon na dive straight in with the key information. So, as you can see from the screenshot, the citadel securities llc annual financial statements were released today, one number that stands out is 65.7 billion dollars of security sold not yet purchased.

You can see here the 65.7 000, which is expressed in u.s dollars in millions. So 65.703 billion dollars of security sold not yet purchased at fair value is their total short position. Their total cure position therefore includes the legit shorts, but also the synthetic shorts. As a quick explanation, the difference between legit shorts and synthetic shorts is that with legit shorts they have to locate and borrow the securities and then sell them and then later buy them back.

Return the securities to fully close out that legit short position with a synthetic short. The shares are not located and they are not borrowed. Instead, the shares are created, they're then sold brought back, and the share is effectively deleted to close out of that synthetic short position. So you may ask okay: tom, does citadel report, the value of securities they've managed to locate and borrow, and therefore we can deduce the legit shorts from the synthetic shores and actually the answer.

Believe it or not, is yes, they do. If we look up here to their asset, section, they've got cash securities owned at fair value and securities borrowed so they've borrowed and then later shorted 1.833 billion dollars of securities. So if they've sold or shorted and not yet bought back 65.7 billion dollars of stock and they only managed to locate 1.833 billion dollars of stock, that means there's 63.8 billion dollars worth of shares that they did not locate before shorting. Now.

This doesn't directly mean 63.8 billion dollars of amc shares, they've, shorted, synthetically. It just means 63.8 billion dollars of total shares in the wider stock market that are synthetic shores. Some of these going to be etf synthetic shares. Some of these are going to be gamestop.

Synthetic shares and other meme stock synthetic shares as well, but i think it's also important to remember that citadel aren't just the only institution that have created synthetic amc shares because citadel may have also facilitated the creation of synthetic shares for other hedge funds as well, and Therefore, even though this 63.8 billion dollars worth of synthetics isn't directly amc, synthetics, there's likely other funds out there that also hold billions and billions and billions of dollars worth of amc synthetics, as hang loose, said notice. How they've only borrowed 1.83 billion dollars in assets for shorting? That means they've created 64 billion or 63.87 billion dollars worth of synthetics? He said also note that they've spread their position around through other institutions, so that figure is just the tip of the iceberg. In true synthetic shores, he says we're potentially looking at trillions of dollars in synthetic shorts combined now again. Obviously this isn't just trillions of dollars in amc synthetics.

This is trillions of dollars in total synthetics, so amc, gamestop, other meme stocks, etf and just other stocks in general, like tesla, for example. Something else i wanted to draw your attention to is the very last page of citadel's financial statements where it talks about subsequent post-year-end events. It says the company has performed an evaluation of subsequent events through february 25th 2022, which is the date. The financial statements were available to be issued.

It says, subsequent to december 31st, 2021, the company had capital withdrawals of 417 million dollars, so in the month and a half or just about two month time period, investors withdrew 417 million dollars directly from citadel. They may say tom at the start of the video you just said: investors are withdrawing 7.5 billion dollars from citadel. This number here only says 470 million where's the rest, but remember citadel capped, their withdrawals to 6.25 percent per quarter, meaning it takes 16 quarters or four entire years to fully pull out the investors. Cash and therefore this 417 million dollars represents only one singular quarter of the total 16 quarters where investors are going to be withdrawing their cash 470 million dollars times.

16 is a total of 7.5 billion dollars that will be withdrawn from citadel over the next few years. As investors are pulling out their cash every single quarter over a total of 16 quarters, therefore citadel are likely to see another 470 million withdraw next quarter, another 470 million in the quarter, after that, another 470 million after that, and so on. That is obviously a giant amount of cash that has been withdrawn from citadel in just one singular quarter. It'd be very interesting to also see the withdrawals in quarter 4 of 2021, core 3 and quarter 2, and maybe even in quarter 1 as well.

If citadel had to set off 7.5 billion dollars worth of securities all at once, so investors could get their cash back. It could end up triggering the market crash 7.5 billion dollars at current prices is nearly the equivalent to 500 million shares of amc and therefore it could have literally triggered the amc squeeze just from investors withdrawing out their cash guys if you're getting a little bit worried. Holding your amc, infidelity or an e-trade due to all the recent glitches and the fact that fidelity actually supports short sellers moomoo, currently buying you a free share of amc on top of their usual five free shares. When you sign up to moomoo using the link in the description below and make your first deposit when you sign up to moomin, make your first deposit, you get two free shares, valued up to three thousand five hundred dollars each and guys.

If you can deposit a hundred dollars, then you also get this free share of amc bought specifically for you and guys. If you can deposit the full two thousand dollars, then you also get a total of five free stocks worth up to three thousand five hundred dollars. Each moon, we've also posted on their official us youtube channel that futu does not accept payment for order flow and therefore you don't have to worry about your trades, going through sketchy, dark pools or being given to citadel. Mumu is also a brilliant commission free trading platform that has tons and tons of technical indicators and advanced charting tools.

They publish daily short selling data position, cost distribution and much much more so guys be sure to sign up to moomoo, using the link in the description below and make your first deposit to get up to five free shares, valued up to 17 500 and a free Share of amc now, the other day i spoke about the russian bonds that were going to zero and noted that blackrock was quite a large holder of these russian bonds. But, interestingly, it's now being discovered that citibank is also a very large holder of russian bonds and has a huge amount of exposure. Rizzo tweeted, an article from reuters that says, citigroup flags, 5.4 billion exposure to russian assets. But interestingly routers were then quick to correct their article and said that now citigroup says their total.

Russian exposure is nearly 10 billion dollars. That's 10 billion dollars worth of bonds that have now been set to zero, so 10 billion dollars worth of collateral. That citigroup has just lost. This is only going to add to the coming market crash, as it means that citigroup are now going to have to rejig their portfolios and sell off some of their securities in order to buy more aaa rated securities to create more collateral.

To meet those collateral requirements, obviously only aaa rated securities like government bonds can be used to meet margin requirements either. Double a single, a or b rated securities can't be used to meet these collateral requirements, but again, selling off stocks is only going to add to the potential upcoming market crash and, interestingly, removing russia from the swift system is being compared to lehman brothers back in 2008. It says that exclusions from swift will lead to missed payments and giant overdrafts, similar to the missed payments and giant overdrafts that we saw back in march of 2020. The bank's inability to make payments due to their exclusion from swift is the same as layman's inability to make payments due to its clearing bank's unwillingness to send payments on its behalf.

History does not repeat itself, but it most certainly rhymes. It says in posar's view current excess reserves and reverse repurchase agreement. Facilities or repo facilities won't be enough, and monetary authorities will need to act. He thinks the central banks should stand ready to make markets on monday again, and i guess throughout the entire of this week.

I think this goes to show just how thin the current liquidity actually is, and just how volatile the market is right now. Not only is the market on a knife edge ready to plunge into a recession at any point, but also the world is effectively on a knife edge willing to plunge itself straight into world war 3. At the moment, these are very, very volatile times and if anything does trigger the market crash, then amc is likely to squeeze alongside the market crashing. Obviously, as the wider market crashes, many institutions are going to have to sell off their stocks as they're being liquidated and they'll be forced to cover their shorts, causing their amc in gamestop squeezes, speaking of which i wanted to quickly touch on.

The amc. Fourth, quarter results before their release. Later today, adam aaron tweeted, saying we formally will be announcing our fourth quarter and year end 2021 earnings this tuesday march 1st at 4 pm central time. He says we hope, as many shareholders as possible will listen to the live webcast.

Here's the link for more details, obviously i'll leave the link to adam aaron's tweet down in the description below, so you can go and watch live. The quarter 4 results webcast at 4 pm central time today. We know that the quarter four box office numbers were absolutely brilliant and the amc is likely to be in a positive ebitda position for their quarter four results. This is obviously brilliant, as it means that amc is now going to be starting to generate that profit dig itself out of its whole and will soon be able to pay those dividends, but also from looking at the quarter to date box office for quarter.

One 2022. We are seeing some more incredible results quarter, one runs january through march and therefore at the moment we are currently only seeing two months of this first quarter, but the box office so far has done nearly 750 million dollars. Therefore, for the total first quarter of 2022, we're likely to see 1.1 to 1.2 billion dollars in total gross earnings. This is, with an average take-home per film of 8.5 million dollars and only 88 releases so far.

Obviously, this is significantly better than quarter one of 2021, where we only saw 117 million dollars from 83 releases, with an average of only 1.4 million dollars compared to say 2017 through 2020. Yes, we are currently lower on a total gross earnings basis, but we are also substantially lower than the total number of releases and obviously higher than the average per film department march is likely to see a large amount of revenue continuing from the film uncharted and also Tons and tons of revenue from the batman and therefore i also expect quarter one of 2022 to be a brilliant quarter for amc on top of their excellent earnings. Expected later today, guys be sure to. Let me know down in the comments below what you think about investors, withdrawing 7.5 billion dollars from citadel and citadel, holding around 63.8 billion dollars worth of synthetic shorts, and as always guys, if you enjoyed this video, be sure to check out some of my others.

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