Today I Want to talk about how Citadel has created and lost over 65 billion dollars in synthetic shares. These were created by Citadel over the last few years, but as a result of reverse splits, the goosep numbers have changed and this is now dead money, tied up and lost forever. Citadel is continually draining their fund of cash and will soon be margin called. So stay tuned and let's make some money.

And now I'm going to dive straight in with the key information. So Dave Matthews We're saying for those that don't want to read through the entirety of my last posts, just focus on this page and ask yourself where have I heard the term sold but not yet purchased before So this article says that reverse merges and reverse splits typically results in a change in accusative Number the nine digit identification symbol assigned to a public stock. Once that Qsub changes, the Naked Short has no apparent way to close out of the Naked Short position. Then, cash is tied up and lost forever.

No real shares under the old cuset number exist anymore. It's all automatically converted to the new Cusick number. But obviously, the recusive number on the SIM shares doesn't change, as these shares aren't part of the Dtcc system. Therefore, these synthetic shorts are shares of a completely separate company that no longer exists and they're for.

These synthetic shorts are useless and warehoused on the books. Those trays can sit in the obligation Warehouse forever in theory, but the Aged fails. Essentially, the orphaned Naked Short transactions remain on the Naked Shortest balance sheet as a liability to be paid later. It effectively ties up cash in these synthetic short positions for a company that no longer exists.

Therefore, cash is tied up and they can never get the cash back out again by Dolores Reckoning they're in the cycle of Naked Shorting and reverse splits would inevitably result in an ever increasing number of aged fails and if that was happening and those liabilities grew bigger and bigger than Federal Regulators could see the outlines of the scheme on any financial statement to Laura I believe Knight accounted for its aged fails in the sold not yet purchased liability section of its balance sheet that's supposed to be an inventory if stocks for use in future Market making which goes up and down as well as a field and considering this according to its own Financial Reports Knights sold, not yet purchased liability jumped from 385 million dollars at the beginning of 2008 to 1.9 billion by mid 2011. 385 million and 1.9 billion dollars are very, very small fry compared to Citadel's number of sold not yet purchased Securities which now sits at 65.7 billion dollars. It's well known that market makers should be in the business of making markets and not storing Securities in their obligation. Warehouse Therefore, this number of security sold and not yet purchased should be absolutely minimal a few million at Absolute Max but that number for Citadel sits at 65.7 billion dollars at 65.7 billion dollars worth of synthetic shares or synthetic shorts, which technically no longer exist anymore.

as the underlying companies have performed reverse splits. This number is obviously blown Mass passively. Since 2019. Back in 2019, it was only sat at 25.2 billion dollars.

That means in only two years, because these numbers are at the 31st of December 2021, their number of synthetic shares has increased from 25.2 billion up to 65.7 billion. That means that over the last two years, Citadel has created and lost over 40 billion dollars in synthetic Shores It's important to remember that while these shares have technically been synthetically shorted already, the companies that it relates to technically no longer exist as the Qsip number has changed. Therefore, that's 40 billion dollars worth of cash that is now tied up and lost forever so that I can't re-short these shares because the underlying company technically doesn't exist anymore. And it's also now getting to the point where the liabilities are so large that Federal Regulators will see the outlines of their synthetic shorting scheme on any financial statement Just like Citadel Securities I Think, especially when the financial statements for 2022 are released.

This will really, really, really be seen. During 2022, the market has been crashing and therefore the overall activity in the stock market has dwindled significantly. Therefore, we should see this number for a reasonable hedge fund or for a reasonable Market maker actually decreasing and maybe halfing again back down to 30 billion. But I Imagine with Citadel especially near that AMC is performing a reverse split.

This number is going to end up increasing to 90 billion. Maybe a hundred billion, maybe even more. More and more of Citados money is being tied up into synthetic short positions that technically no longer exist as the Q-sip numbers are. Ever Changing Guys, you may remember last week that I introduced you to Prime Xpt.

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Don't forget, they do leverage this number up and therefore have around 240 to 250 billion dollars in total. Securities But while they have 59 billion dollars in assets, they also have 65 billion dollars in liabilities of security sold not yet purchased. This is 65 billion dollars in dead money tied up that they can never access and never use ever again. And that is why earlier this year Citadel limited their investors from withdrawing to 6.25 of the overall fund on a quarterly basis.

They also took on a 600 million dollar loan and sold off for of their business or because they have more liabilities currently tied up in dead money than they do have actual assets. But it's also important to remember that Citadel Securities isn't just the only fund. They're not just the only bank and they're not just the only Market maker that has security sold and not yet purchased. For example, JPMorgan Chase has 60 billion dollars in financial instruments sold, not yet purchased at fair value.

We've got Goldman Sachs here that also have 79 billion dollars on top of that of again, financial instruments sold but not yet purchased. Again, it doesn't stop there. Citigroup Global Markets has 37.9 basically 38 billion dollars of security sold and again, not yet purchased. We've also got Morgan Stanley that have 48 billion, We've got Wells Fargo that has 35 billion and we've even got Bank of America that has 170 billion dollars in security sold, not yet purchased.

It's absolutely crazy to think of just how much money right now is tied up in these dead synthetic shorts that can no longer be used, but on top of these dead synthetic shorts. I Also wanted to touch on something from my video yesterday that makes it even more expensive for these hedge funds to continue shorting. AMC After the conversion, not only do their Ape shorts convert into AMC short, so for every one share of eight, they were shorting at 60 cents to a dollar, they'll now be shorting an AMC share at four to five dollars thereby 5x in their short position, but you also have to factor in the change to their maintenance requirements as well. For example, if a short once the short one share of AMC, they have to pay a short selling fee rate of 98 per year.

But on top of that, they also have to have a margin maintenance requirement of a hundred and fifty percent. Therefore, if they want a short 100 million dollars worth of AMC shares, they need to have 150 million dollars worth of AMC on hand. So instead of their short position five vexing during the conversion from Ape to AMC their short position actually 7.5 X's during the conversion. So if they've been shorting 10B million dollars worth of Ape, they're now going to be shorting 75 billion dollars worth of AMC when you factor in that maintenance margin requirement.

On top of that, we've also seen the cost to borrow fee for AMC absolutely rocketing again over the last few days. The cost to borrow average right now is 231 and the cost to borrow maximum is around 286 percent as well. We're also seeing that all important cost to borrowing minimum skyrocketing as well up to 45.75 So for sure we're shorting around 10 billion dollars worth of Vape after the conversion, they'll be shorting around 75 billion dollars worth of AMC. On top of that, they'll also have to stamp up 150 billion dollars worth of borrowing costs just for those AMC Shores So all of a sudden, a 10 billion dollar ape short position has increased to 150 billion dollars in borrowing costs and 75 billion dollars in shorting costs as well.

I Think this alone could potentially vaporize many of those shorts as many of those shorts won't have a spare 200 billion dollars in available margin. That means their short position when you factor in this rocketing Costa Parish fee basically 25 X's after the conversion. On top of that, the conversion and the reverse split does not make it easier for these shorts to borrow shares as retail investors will still be holding the same portion of AMC shares of the split and offer the conversion as we do right now, especially as the market has crashed this year. As unusual, I was tweeted, he said the US Stock Market has lost 11.7 trillion dollars in market capitalization from its January highs.

That means the Shorts, these hedge funds, and these market makers are already down 11.7 trillion dollars in their total fund values, making them 11.7 trillion dollars closer to being margin called and especially when Ape converts into AMC practically 25x in their short position requirements. It's going to mean that more and more hedge funds will be closer and closer to margin calls and could end up being liquidated. I Also wanted to show you this video that Whimsychic posted of a personal chat with Adam Aaron this evening regarding the vote on the reverse split Adam Iran Practically confirmed everything I've said in this video by saying that Ape is currently too undervalued and therefore by converting it to AMC massively increases the price of those Ape shares as it turns them into AMC shares. Obviously, that does increase the share price for us, but it also massively increases the cost for these shorts.

To do their shorting are the same thing. Okay, and there's no explaining it, but the market is priced the Ape at one seventh of the common share and they're the same thing. so we're giving them away at 1 7 of where we should. So it makes it so.

we got to put them back together, right? And if you own the Ape, it's going to go up and die. As the company raises more capital in the future, we'll raise it at three, or four, or five or six times the price we're getting now for it and this makes no sense. But But you know, when we announced that today, the ape went up 75 today? Well, my AMC one, yeah, it went down seven AMC went down seven percent. but Apes went up 75.

So that that tells you, the market knows that they've been playing games with us. My AMC one called, we're at thirteen hundred percent. Really? Yeah, really? In the pre-market Or you know, like right at that, right? Well, there you go. and I think right there right at the end is where.

Adam Aaron Really let us know that he knows exactly what these shorts are doing to the AMC stock. He said the market knows that they've been playing games with us AK playing games with the AMC and eight shares AK Manipulating the prices. But guys should 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!.