Welcome back to the channel everyone today, i want to talk about how melvin capital is about to be liquidated. This video will show you just how close we are not only to the market crash, but also to that amc squeeze so stay tuned and let's make some money, and now i want to dive straight in with the key information, so the hedge fund, that lost 53 In january 2021, betting against gamestop bought 1.3 billion dollars of facebook stock in the fourth quarter. Now you might say well tom. Why is that a bad thing? Facebook is a brilliant company.

Well, facebook finished the day yesterday down 26 and is down even more in the pre-market today. This is also not the only losing investment that melbourne capital has had over the last few days, but first, let's do a bit of a recap on melvin capital and gabe plotkin and figure out how they got to this position in the first place. Obviously, at one point, melvin capital was down around 70 on its gamestop trade. It closed january of 2021, down 53 now melvin capital for the full year of 2021 posted loss of around 39, so they managed to recoup some of their loss from gamestop but still ended.

The full 2021 year down significantly and then on top of that melvin capital also had a very rocky start to 2022, losing around 1 billion dollars in three weeks to start 2022. Now, obviously, that was around three weeks through january, and the market has only continued to somewhat stay stationary and, if not full, even more, and therefore it's likely that melvin capital is now down even more than that one billion dollars and now over the last few days, Melvin capital has had some absolutely terrible results. They hold a large position in facebook, which yesterday was down around 26. They also held a large position in square down around 19 and also a large position in snapchat down around 22.

You can see here. Snap is their. Fourth largest position, meta platforms or facebook is their 12th largest position and square is their 18th largest position and therefore this is a massive chunk of the melvin capital portfolio. That's getting absolutely torn to pieces and is down over 20 on the day, not down over 20.

On the year down over 20 on the day, having a quick look at the facebook chart, we can see yesterday facebook fell drastically. This is it down here after a massive massive drop. Facebook hasn't seen levels this low since july of 2020, not july of 2021 july of 2020. So in one singular day, facebook are raised around a year and a half worth of gains now guys most of you probably don't have a lot of confidence in the stock market, but at the moment there seems to be massive amounts of market manipulation and market fraud.

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That way, you can get cash to meet your day-to-day expenditure without having to sell off your crypto. Now you might say tom: how on earth is gabe, plotkin and melvin capital staying afloat? How on earth haven't they been margin called already, and it's because gabe plotkin is raising cash for a new long-only fund. The only way gabe plotkin has been able to avoid this liquidation is because he's been raising money. He managed to raise two billion dollars back in 2021 from citadel back in january.

He managed to raise money from other investors in 2021 as well, and now he's trying to open a new fund to raise even more money. But obviously, the only rock in his plan is that he's not making his investors money he's actually losing the money and therefore he's very quickly. Gon na run out of people that are willing to lend him money and everyone is going to want to withdraw from his fund. There's only so many times that gabe plotkin can go into the market and say guys.

Please can i borrow a billion dollars and then come back a week later and say sorry guys i lost it. Please can i borrow another billion, it won't happen again and then he comes back a few weeks later. Oh sorry guys lost that billion as well. I promise this time i won't lose your next billion there's only so many times.

You can do this before his current investors withdraw from his fund and he ends up being liquidated and potentially ends up being found dead. A few days after as you'll have lost some very, very wealthy people, billions and billions of dollars. It's like finding out that your girlfriend or boyfriend has cheated on you, so you give them one final chance, but then find out a few days later that they've gone and done it again. So you give them another chance, but then find out a little while later they've cheated on you another time you give them another chance and they do it again, there's only so many times that they can cheat on you before you get fed up and just get Rid of them - and this is why melvin capital is so so close to being liquidated and causing the market crash and also causing the amc and gamestop squeeze so far.

Gabe plutkin has managed to escape this famed liquidation, but i think he can only escape it. For so long before, investors want to withdraw their money or before he loses it all, and i think something that shows just how close to the market crash we really are is framed excellently by perry patel. He says nothing to see here, just a 40 billion dollar mega company being pumped and dumped like a penny stock. Obviously, yesterday's snap was down around 23 on a day, but in the aftermarket yesterday it was up 54, but it's not only snapchat.

We can also see amazon up around 13 in the pre-market this morning. Typically, you see amazon up, half a percent or down half a percent and on a big day it may be up one percent or even up two percent, but to show just how volatile the current market really is. At the moment, amazon is up 13 in the pre-market. At the moment, blue chip stocks, like amazon apple, google, facebook and many others are more volatile than bitcoin and other cryptocurrencies.

This proves just how absolutely ridiculous the current stock market really is and how it's currently trading on a knife's edge and could go either way. But at least the department of justice is doing their job as they've expanded their investigation into short selling abuse. Now, up to 60 different firms with a focus on activist short sellers, aka market manipulators and as rizzo stonk says, aka citadel. Why doesn't the treasury just come out and announce it? They want to get rid of bad actors post market correction and want to remodel the financial markets where one entity can't take them hostage and roll with the corruption.

Now you may have seen that charles gasparino supposedly confirmed that citadel securities, nor its associated hedge fund is on the department of justice list of 60 firms targeted now, obviously, as trey says, charles didn't really provide any source whatsoever. Just a bit of trust me bro, but also the average ape added saying the entire list hasn't been fully disclosed and therefore, even though the department of justice have expanded their search or their investigation into 60 different firms, they still aren't finished and will be adding to This list as well now, just in case you thought this was too good to be true. There's something very, very coincidental. That's just happened.

The department of justice recently announced their investigation into short selling abuse and an off-site document. Storage facility in chicago has just burnt down and guess who the facility is connected to td ameritrade. A lot of pd ameritrades records were stored at that facility, and it wouldn't surprise me if citadel also had records stored at that facility as well. Considering it's based just outside chicago now, if that isn't a very coincidental way to cover up massive amounts of market manipulation, i don't know what is the department of justice ask for access to your records? So what do you do? You just burn them down and set fire to the entire warehouse, guys be sure to.

Let me know down in the comments below what you think about the potential melvin capital liquidation and how close you think. It really is, and as always guys if you enjoyed this video, be sure to check out some of my others. Alternatively, subscribe to the channel and ding that notification bell, because that way, you'll be alerted when i upload a new video cheers.