Today I want to talk about how we've just found where and how Melvin Capital are hiding their short positions, but also how this is turning into a rolling snowball for Citadel that will shortly all end in tears as they tuned and let's make some money. And now that I've straight in with the key information. So JP vs Wall Street Started by explaining the logic behind all of this. He said Melvin Capital never closed their short positions as it would have caused a domino effect.

He said other criminals the likes of Citadel 0.72 Susquehanna and many others would have all went down. So someone is holding on to Melvin's trash and that's also the reason they bailed Melvin out the first time. Obviously Melvin Capital said they were going down and closing down the fund, but obviously what happened is completely contradictory. As a prime example, when RKOs blew up, we saw many stocks they were holding and that they had artificially pumped.

absolutely crashing by 18, 19, 95. But on the flip side, when Melvin Capital went down, the stocks they were holding didn't fall at all and the star stocks they were shorting did not squeeze. That shows that Melbourne Capital absolutely did not bail out of their positions in the open market and they did not wind down their firm by liquidating all assets. Therefore, the only answer is that someone is holding on to Melvin's trash and therefore the positions that Melvin was holding have not actually been closed, just transferred.

Also guys, if you haven't already started investing or you just want some extra free shares, be sure to sign up with MooMoo I mean was very easy to use. It's very customizable, they don't engage in payment for order flow, and they have tons of technical indicators, so be sure to sign up to MooMoo right now using the link in the description below where you can currently get 15 free stocks of Apple Amazon Tesla and many other companies. And on top of that, you also get a chance to win Moomoo's sixty thousand dollar giveaway Sweepstake And as Victoria tweeted she said Kenny and Gabe have been hiding their short positions and did we find them here? So this is a screenshot of a US company with the name Citadel KW Melvin Holdings Two LLC This company was started or Incorporated on the 25th of January 2021 when Gamestop was experiencing its first run up. Now we can see that this private fund is actually a fund of funds.

The term funder funds may not mean anything at the moment, but in a few slides all become clear. We can also see the gross asset value of the private fund is 1.2 billion dollars, which is very interesting because it's not relevant to the amount Citadel actually lent to Melvin Capital This is obviously a separate fundraise separate side deal taking on some of oven Capital short exposure. And very interestingly, we can see the custodian for this fund of funds is the Bank of New York melon. Therefore, Bank New York melon is obviously the fund that is physically holding these short positions or these bullet swaps.

Now for the explanation of fun defense: a Fund of Funds or Fof is an investment strategy of holding a portfolio of other investment funds AK where One Fund like Citadel holds the investment of another fund like Melvin Capital. And we can see from an updated filing dated the 20th of May 2021 the fund had posted a new filing saying they just raise another billion dollars. The interesting part is the total amount sold or offered is equal to the total current AUM of Melbourne capital and includes U.S and non-us investors basically saying this new fund or this new company had just taken on the rest of the Melbourne Capital short position on the 20th of May. Overall, I Do think it's very interesting and very cool that we finally found the underlying paperwork for the bailout of Melbourne Capital organized by Citadel.

This was obviously something that was speculated for a while, but it's great to see we've now finally found the evidence just like we do with everything month after month after month. Now, a quick side note that I found very, very interesting is this isn't actually the first time that Citadel has bailed out another hedge fund back in 2011. Northern Trust Bought the hedge fund omnium LLC from none other than Chicago based Citadel LLC It says Northern Trust had announced its intention to acquire the leading hedge fund administrator with approximately 70 billion dollars in assets under management in May of 2011. back in 2011 or sometime before that, Citadel had obviously rescued or bailed out on the new LLC buying off all of their positions and then at a later day either sold those short or long positions to Northern Trust Now Cristobal also added and said great find There's actually two of these similarly named Citadel and Melbourne Capital companies and both are still active Citadel KW Melvin Holdings two LLC and Citadel KW Melvin Holdings LLC I Think it'd also be very, very interesting to see if there's any overseas cidel and Melvin Capital companies based on the BVI or in the Bahamas or anywhere else.

Obviously, when these hedge funds or companies are based overseas, there's usually much more LAX reporting requirements and these funds don't have to report how much they're actually managing because this hang loose. tweeted. He said when you keep it off balance sheet and in offshore entities, then it's not subject to SEC rules, making the rules meaningless. We know that Citadel has numerous accounts overseas holding billions and billions if not tens of billions and hundreds of billions of dollars.

That obviously enables Citadel to avoid reporting on what they're actually doing with that money or who they're bailing out and what positions are being bailed at as well. While it also added by saying it looks like a trade agreement between Melvin and Citadel with Bank of New York Melon as their custodian holding all of the shares or the short positions. although those bullet swaps Citadel has obviously taken over as counterparty for these swaps in place of Melbourne capital and he said, in his opinion, basically somebody puts in an order to execute a trading plan with Citadel and it's all funneled through derivatives. Citadel Derivatives Group handles all of these orders and as catch added, he said I Suspect the Melvin bailout basically consisted of Citadel buying out all of Melvin's short positions and then using out of the money options to hide the resulting Ftds.

He said they do this under a dedicated shell company, likely overseas so they don't have to list all of the liabilities under Citadel Securities themselves. AKA That doesn't factor into the main Citadel Securities balance sheet, the one that has 65 billion dollars of assets sold or security sold and not yet purchased. but again, you'll see later on in the video how this all ends up in Citadel snowballing itself into a massive massive implosion, and he said they perhaps even used the options purchased in the Shell company to legally allow Citadel Securities to naked shorter stock in order to remain neutrally hedged as per the requirements of a market maker, therefore achieving the same results without ever having to involve Citadel Securities in any of this Melbourne Rubbish at all, just simply those overseas entities and those entities with the conjoined names He said they obviously don't want any of Melbourne capitals rubbish on their main balance sheet. Hence, the creation of this separate fund with the double-barreled conjoined name and also likely other overseas funds as well.

But I also want to explain how these derivatives that Citadel have used will soon unwind and how Citadel has been snowballing themselves into an implosion. As Pedro tweeted. He said there have been other times when regulatory bodies or clearing agencies have completely screwed retail over in order to bail out their criminal buddies. But as I said, these derivative contracts will soon be unwinding and the broker dealers will be responsible for picking up the pieces.

This lawsuit says in 1998, Refco a large short hedge fund forward bankruptcy and was unable to meet margin calls on their naked short positions. It says under this scenario, the broker dealers are the next line of financial responsibility and that's kind of what happened in the Arcadia situation when Bill Huang walked away and these broker dealers and major institutions had to sell off his positions. This is the number of shares that allegedly should have been bought was 400 million shares, but that probably never happened. The DTC owned by the broker dealers just buried the 400 million counterfeit shares in their system.

Why they allegedly remain Now, These shares where they allegedly remain, were grandfathered into legitimacy by the SEC Because they are grandfathered into legitimacy, the SEC DTC and the prime Brokers pretend they are no longer failed to deliver. But obviously with phase Six, any of those previously grandfathered in derivative contracts actually expire and have to be re-entered into. That's obviously going to cause a massive headache for Citadel And that's why their position for security sold not yet purchased, has ballooned and snowballed over the last few years. We can see in 2018, Citadel only had 22 billion dollars in security sold, not yet purchased, in 29, that increased marginally from 22 billion up to 25, but in 20 that increased massively from 25 up to 57 billion, and in 2021 from 57 billion up to 65 billion.

And now with the massive amount of synthetic shorting that has happened in 2022, I expect this figure to increase to 70, 75, or maybe even 80 billion. and Beyond The Citadel Security snowball has been growing and growing and growing over the last few years, and I don't think it will be long until Citadel ends up imploding. Citadel has obviously built up a position of multiple billions of dollars, if not tens or hundreds of billions of dollars, not just in normal short positions, but also an illegal derivative positions as well. I Do believe this is going to blow up in Citadel's face, likely very soon.

And top of that, it seems many other major institutions may be already imploding as well as water. Bloomberg tweeted he said: Goldman Sachs Group Incorporated plans to cut 3 200 jobs starting this week and they said it's part of a wave of cost cutting on Wall Street after a big slump in Deal making and a big slumpback profits. 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!.