Welcome back to channel everyone today, i want to talk about how the shorts are starting to cover their short positions. I also want to explain why they're being forced to cover their shorts and also how these shorts are currently trapped between a rock of over leveraging and a hard place being blackrock borrowing so stay tuned. And let's make some money. And now i'm gon na dive straight in with the key information.

So obviously these hedge funds aren't yet covering their amc and gamestop short positions, because obviously these shorts will be the last they cover they're, going to start by covering some of their smaller short positions. In other stocks, because it won't be as damaging to the fund and liquidate the entire fund and the entire short hedge fund industry, all at once, because we know that when these hedge funds cover their amc, short positions, it will liquidate all of the hedge funds. Currently, shorting amc that have created or have partaken in the creation of synthetic shorts and therefore these hedge funds are starting by covering their smaller short positions in other stocks, to free up additional capital to add to their over leveraged long positions and to add to their Over leveraged amc shorts, so this article says that hedge fund adelphi is scrambling to close their short positions with 53 reductions in their short positions. In the last three months, breakout point said: adelphi was an outlier among funds in europe, as it was the largest cover of shorts this year.

So a delphi capital has reduced its short position on a dutch real estate firm, seven times over the last three months. To obviously free up additional cash to add to their over-leveraged longs and their over-leveraged shorts, hedge fund of delphi capital has been covering its collection of european short positions. Since the beginning of the year, the hedge fund has disclosed 53 reductions in its bearish holdings, while reporting additions to short positions only four times, so it says: adelphi reduced its short position on the dutch real estate firm, seven times trimming it from around 1.5 of the Company's shares to about 0.4 of the company's shares by the 3rd of march, and the hedge fund also held a short position, making up around 1.24 of network international holdings which, over the course of this week, has reduced to only 0.49 of the company and lands down Partners, another london-based fund also closed shorts as well disclosing that it cut a short position 34 separate times. So, therefore, we can see that many of these hedge funds are starting to trim their smaller short positions on these smaller companies, because they need to free up the cash to add to their over leveraged longs and their over leveraged amc shorts.

As i've always said, these hedge funds are going to be closing their smaller short positions, because it will be less damaging to the overall fund, less likely to cause the amc, squeeze and less likely to crash the market. But obviously, when these hedge funds have covered all of their smaller short positions, but still haven't freed up enough cash because they're still too over leveraged on their amc shorts, they will be forced to close their amc shores and obviously when they are forced to close their Amc shorts: when they've got nothing left, it will cause the amc squeeze and it will liquidate tons and tons of other hedge funds that get caught up in the squeeze as well. Now, something really interesting that i found here is this paragraph here. It says, unlike the us most european regulators, require funds to publicly disclose short positions exceeding 0.5 percent of a company shares.

So if only amc was a european stock, all of these hedge funds would have to disclose their true short positions, even if they were well over a hundred percent of the company's flow. I do think the public disclosure of short reporting is something that is absolutely necessary in the u.s stock market and hopefully over the next few months. This is something that we, the retail investors, can push for. Now.

I also want to talk about just how screwed citadel is as they're in a continual feedback loop with blackrock, because, as this post says, blackrock is helping citadel with a rope. Now guys, many of you may not have a lot of confidence in the stock market at the moment. There's all of this market manipulation and market fraud. That seems to be going entirely unpunished and that's why i personally also like to invest in cryptocurrency, especially now that bitcoin is trending upwards.

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Also, no annual fees and no foreign transaction fees either and right now the card is currently available in the united states, so guys be sure to sign up to block five using the link in the description below to get up to 250 dollars in free bitcoin. So blackrock loaned 40 million shares to help hedge funds and market makers like citadel double down on their terrible amc, short positions and add to their amc shorts. But at the same time, blackrock is probably going to need those 40 million shares back to sell to cover their losses from their terrible chinese and russian junk bonds. Don't forget, blackrock holds tons and tons of russian bonds and chinese bonds as well, and all of these chinese and russian companies are now defaulting on their dare and therefore blackrock is going to need to recall.

All of these shares that they've lent out to sell the shares to free up additional liquidity to make back the losses from their bad bond bets. This post says that blackrock is that whale that is helping citadel, get away with their infinite short glitch by continually lending them more and more shares. The rates for cost to borrow on shares of amc and gamestop are very helpful to our least favorite market maker, but short lending is their business model and even elon musk pointed out how blackrock helps short sellers with predatory lending tactics, aka cheap rates for massive profits. These shorts and amc are a literal time bomb that is helping citadel float at the moment because they are suffering a net loss but in reality, they're just setting up the rope for them keep in mind that blackrock is long on amc and they do want amc To increase in value in the long term to make up for their losses on their bad bond bets, even if the shorts push the price down in the meantime or in the short term.

He says this is what blackrock does they trap shorts in an endless cycle of pain for more and more money? The shorts obviously try and push the price down by borrowing shares from blackrock, but ultimately blackrock pushes the price up, and then these hedges are stuck in an endless loop where they need to continually pay money to blackrock. To borrow these shares, even though the price stops falling now, he does say that blackrock doesn't care about the apes because we're simply pawns in their game and many of us have suffered substantial losses in the past few months. He says i'm not saying that they're, the good guys, but another squeeze like the mother of all short squeezes is in their hands. They have the next chess move to play to crush the shorts and increase the price of amc to levels it hasn't yet reached effectively.

Blackrock are in the driver's seat. They've got the shorts trapped. The shorts need to continue borrowing these shares from blackrock at any rate they charge and blackrock can push the price up at any time to trap these shorts forever. He says if apes weren't buying, then the shorts would have no reason to have as many shorts as they currently do.

That's why it's important for apes to continue to buy and to hold and drs if you like, but as long as apes, continue to buy and cause momentum. The shorts will have to continue to short and will have to continue, borrowing more and more shares from blackrock, and he does say that blackrock, vanguard and other institutions will likely buy during the next squeeze because they want to squeeze out the shorts as well as they're. Long and amc and ultimately want the price up. Ultimately, i do think this is true, because we know that blackrock makes tons and tons of money from lending out their shares and ultimately they're just trying to trap these shorts like citadel and ensure that these shorts are borrowing the shares from blackrock forever and ever because, Obviously, the longer these shorts have to borrow these shares and continue to pay that interest the more money the blackrock makes and therefore blackrock will hold the shorts where they are and will continue to trap the shorts and steadily push the price up and increase the borrowing Rate of amc as well to make more and more money, and i also want to talk about just how over-leveraged these hedge funds and private equity firms currently are ben hunt.

Tweeted saying i remember in 2006, david bondeman was talking about the golden age of private equity and how everyone was enjoying it and how it was all created from additional leverage, and he said the last 10 years have been the golden age squared for the deleveraging ahead. Will make this a terrible age for private equity and dave lower said? A group of my friends in finance are pretty much in agreement that the next shooter drop is in the private equity sector. He said it's not only done terrible things to our economy with dramatic increases in corporate concentration, but as soon as the leverage starts to unwind look out below, we know these hedge funds and private equity firms are so so over leveraged and have been for the last 10 years and dave lauer thinks this is all going to unwind very very shortly, even this article that i showed you earlier said that a survey conducted by bloomberg found that nearly half of all participants believe a recession will occur over the next year. I think that really goes to show just how trapped these hedge funds really are because they're effectively trapped between a rock and a hard place.

These hedge funds are trapped because they have too much leverage and they're now stuck borrowing. All of these shares from blackrock there's effectively no escape for many, if not no escape for any of these hedge funds, because they can't deleverage on their over leveraged positions without generating more profit, obviously can't generate more profit, because they're forced to pay tons and tons of Money to blackrock for borrowing all of these shares, while blackrock pushes the price up of the overall market. This hedge funds are trapped between this rock and a hard place, and it won't be long until it all begins to unwind and as dave lauer says, when this happens look out below, and i also wanted to give some quick updates from adam aaron and on the Overall, amc company, this poster says the first three hours of the multiverse of madness: ticket pre-sales outsold, the batman's full, 24-hour total pre-sales. The batman was another record-breaking film and i think the doctor, strange's multiverse of madness, will crush batman and crush many previous records.

This could potentially be not only a new post-pandemic record, but could also break a number of records from 2019 2018 and before, especially with how large the marvel franchise has grown over the last few years. This could be potentially a new record-setting film, even outselling, avengers, end game and adam aaron tweeted, saying the playing on offense by amc. Entertainment continues. A pace announcing today are acquiring from bow tie: cinemas, leaseholds on seven more choice: movie theaters five are in connecticut more than doubling our presence there and strengthening our position in the northeast us.

This is obviously great that adam aaron is continuing to expand and to diversify. Not only is adam aaron picking up additional cinema chains, but is obviously diversifying into different industries like with their hymc acquisition. Yes, it's good to see adam aaron, picking up more and more cinemas, but it's also good to diversify risk as well. I do think the acquisition of an additional seven new cinemas is only going to strengthen amc's presence, especially in the northeastern us guys be sure to.

Let me know down in the comments below what you think about the shorts starting to cover and how these shorts are trapped between a rock and a hard place, and as always guys, if you enjoyed this video, be sure to check out some 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.