Welcome back to the channel everyone today, i want to talk about the biggest short squeeze ever seen on record. Back in august of 2020 dgazf went from 125 to 25 000 per share in a matter of only a few days. I also want to talk about non-regulatory halts and what they actually are so stay tuned and let's make some money, and now i want to dive straight in with the key information. So this is an example of a short squeeze dga stock price shot from 125 to 25 000 per share back in august of 2020., so some people suggested there was a reverse stock split that caused this massive increase in price and not actually a short squeeze.

But that's not actually the case and there's a number of articles written back in august of 2020 about the ga zf and the short squeeze and therefore it actually was a short squeeze. But so let's set the scene a little with it too long. It didn't read the etf or etn stock had 45 short interest and 140 000 shares shorted. Now, obviously, it doesn't take a genius to work out.

The float of this etf was only around 300 350 000 shares, which actually isn't that many shares. Therefore, it was obviously fairly easy for an institution or a number of institutions to buy up the float quite easily and squeeze those shorts, but the exact same thing is happening with amc, but on a much larger scale. We know there is a lot more than 45 short interest, as it's very likely. The float is shorted multiple times over, and on top of that, we know that the apes own the float, if not owned, the float many times over and at the very least own.

Eighty percent of all of the shares or ninety percent of the shares per adam aaron's recent communication and this etf rose slowly from 125 dollars. A share to 400 a share. It then rose again to around 3 000 a share and then it squeezed very very quickly. All the way to 25 000 per share and therefore i really don't think it's unrealistic for amc to see five digits, six digits or seven digits per share and the squeeze won't be finished at two or three hundred dollars per share.

I think amc could see these numbers and, if not much higher numbers because of the sheer number of synthetic shares out there right now. The gazf didn't really have many, if not any synthetic shares and the etf still short squeezed. So the main part of the squeeze here happened in around 45 minutes, where the etf went from around 3 000. A share all the way to twenty five thousand dollars a share.

I've also got another chart that shows prior to this, when it increased from around a hundred and twenty five dollars a share to three thousand a share. You can obviously see that the price took off very rapidly cooled off for a short period of time. During some halts it then increased rapidly again, and you can also see there's some smaller halts here as well. It then slightly cooled off a bit actually dipped a bit and then run up again before the squeeze was over.

So we note there was a large amount of faults during this period because there's very little volatility in the price and there's almost zero price action at all, because obviously the etf wouldn't have been trading at this time again. We can also see single candles here and here with very little, if not zero activity and remember this is a five minute chart and therefore that's five minute intervals so again more holes again. We can also see another halt here. Another halt here - another halt here and here and three holes in a row here as well, and therefore this entire squeeze was plagued with halts all the way up.

There's obviously, a few halts here on the way up this whole period here is all halts and there's more hulks on the way up here here here and here as well, but we can see the actual main meat and potatoes of the squeeze where it went from Three thousand dollars a share all the way to twenty five thousand dollars. A share actually happened very very quickly, but the time period below three thousand dollars a share actually took a few days to happen. I think it's quite likely that on wednesday, the 12th, a very very large fund was liquidated and that's why there was such a dramatic price increase so quickly, but then very quickly fell back down after the entire short position had been covered. Guys mumu are a brilliant commission-free broker.

They also don't make their money through payment for order flow. Mumu and futu make their money from margin interest and from payment fees. And this way you can trade permission free, but you don't have to worry about your trades going through those sketchy, dark pools or given to market makers like citadel and on top of this moomoo has excellent technical indicators and they even publish daily short selling volume. On top of a number of other important pieces of information, and right now, you can currently get up to five free stocks, valued up to three thousand five hundred dollars, each just for signing up with moomoo, using the link in the description below and making your first Deposit, so that's potentially up to seventeen thousand five hundred dollars in free shares that you can get right now, just for signing up with moomoo now something else i wanted to bring to your attention is the volume around the very tippy top of the squeeze i'd say These five candles here represent the highest portion of the squeeze, but let's look at the volume at that time, so these five candles here represent the very tippy top of the squeeze, and this small candle here represents the highest point and therefore there was actually very very Little shares sold at the tippy top and most shares were sold throughout the rest of the day.

At other points in time, one of the articles suggests that only one singular share was sold for 25 000. There was also around 10 to 15 shares sold between 24 to 25 000, but obviously, most of the volume for that day was transacted between 3 000 to 23 000. A share - and this is why i say it's important - to sell in multiple intervals on the way up during the squeeze, so that you don't miss the very tippy top. Only one person is going to sell one singular share at the very top and everyone else is going to sell at multiple points throughout the day.

I think it's crucial to sell off, say 10 or 20 here, another 10 or 20 of your shares here, another 10 or 20 percent here, another 10 or 20 here trying to get out another 10 or 20 at the top and then selling any final remaining shares On the way down, i think it's very important not to miss this whole price action entirely and sell on the way down to thirteen thousand dollars or even lower back up a thousand dollars a share. The poster said: yes, of course, not every share sold for 25. 000, sadly, so you'll just have to hold them even more. Only a few will get the max shares price and it's only those who have the real diamond hands.

Here's the one month chart for that etf or the etn. Obviously, most of the action happened here on the 12th of august, but you can see the squeeze really started at the very start of august. At the very start of august, it increased from around 125 a share, although up to around 400 a share. It then jumped to three thousand dollars a share on the 11th and then did most of the squeezing on the 12th.

Now, during the squeeze the dga zf etn short sellers lost 2 billion dollars in the matter of only a few days, even though two billion dollars doesn't sound like a lot because short sellers this year, it down more on amc and gamestop, don't forget, there was only Around 300 000 shares trading of this etf, whereas with amc, there's, 513 million shares traded and therefore, when amc squeezes short sellers will be down a lot more than only two billion dollars. The article says: dj zf's recent black swan price move in an eliquid trading environment has forced regulators to suspend trading of the etn. The ega-zf has been trading at a significant premium to its underlying assets for quite some time, but it reached an exorbitant level when one share traded at a price of 25 000 on august 12th trading in the afternoon of august 12th were only small lot. Trades.

Most trades were less than 10 shares per execution or 10 shares per trade. Such trading points to either algorithmic trading, trying to exploit the premium arbitrage in the etn or short sellers trying to cover their open positions in a very imbalanced bid or offer market with trading solar, liquid and the bid or offer order imbalance. So extreme long sellers were able to drive up dj zf's price shares closed at the 15 000 level on the 12th. Now very, very interestingly, it says here on august 7th, dj.

Zf short interest was only a hundred million dollars which, coincidentally, is pretty much the exact same short interest, as amc has right now, but it says, but the etn's price moved from 720 a share to 15 000 a share and it created nearly 2 billion of mark To market losses so somehow the short interest was only 100 million dollars, but short sellers lost around 2 billion. Obviously i guess because they continued adding to their short positions, and maybe there was a lot of synthetic shorts here as well now. The reason why i think it will take amc longer than a few hours, or only a few days to squeeze is because amc is on a much bigger scale. Obviously, with this etf, there wasn't that many shares being traded.

The float wasn't really that big. So there wouldn't really have been too many institutions to liquidate. Maybe this large squeeze was caused by the liquidation of only one short hedge fund, but we know there's at least 10 to 15 large short hedge funds, shorting amc and many many smaller hedge funds. We also know there's a lot of nefarious activity going on with amc and the shorting of amc and therefore it's likely these short hedge funds are trying to hide synthetic shorts and therefore it could take longer than a few days to liquidate the entire fund.

Obviously, the books need to balance, so the liquidators are sure that all of the shorts and all of the synthetic shorts have all been covered and therefore, i think with amc, we're a lot more likely to see this kind of pattern drawn out over the space of A few days or a few weeks, not over the space of a few hours, and i think we're likely to see more dips as well. The reason why i say we're going to see more dips is because i think that amc squeeze is going to be lots of mini squeezes, all wrapped up together, effectively we're going to have one fund being liquidated and all the shorts covered. But then there won't be any buying pressure to buy more amc, but the next fund will be in the process of being liquidated and when the liquidation goes through, obviously all the shorts will be covered and the price will spike again. Amc will then dip with no buying volume and no funds to be liquidated, but another fund will be in the running for being liquidated as well.

Now, when that third fund is liquidated again, it'll push amc up again and continue the squeeze and therefore, i think we're going to see a few mini squeezes as all of the individual funds get liquidated over the space of a few weeks. Until we reach the very tippy top and there's no more institutions that need liquidating now, i also want to talk about non-regulatory trading halls. You'll know that yesterday i spoke about regulatory trading halts and what different type of halts there are, but there's also some non-regulatory halts that don't fit into any of those categories that i discussed yesterday. So direct from the sec website says: there's two types of trading halts and delays.

Regulatory and non-regulatory, the most common regulatory halt and delay happens when a company has pending news that may affect the securities price, a news pending haul or delay, which i discussed yesterday now. Non-Regulatory, halts or delays occur on exchanges such as the new york stock exchange, but not on the nasdaq when there is a significant imbalance in the pending buy and sell orders in a security now i think this is something we really have to pay attention to, because Amc is traded on the new york stock exchange and there could be a very large imbalance between the pending, buy and sell orders during that squeeze. Obviously, we're going to have lots of sell orders up at 5 000 hundred thousand dollars per share, but the hedges aren't going to want to buy at that level. Obviously they will be forced to buy, but there is going to be very, very large.

Differences between buy and sell orders because the liquidity will be so thin when the price is that high. Obviously, when the price is down at say thirty dollars, there's tons and tons of buy and sell orders at this level, but because most people can't pre-set sell orders for fifty thousand dollars a share. There's currently zero orders. Zero sell orders up that high when the price does get that high people are going to be trying to set sell orders as fast as they can, but ultimately, the liquidity will be thin and it says when an imbalance occurs.

Trading is stopped to alert market participants to the situation and allow the exchange specialists to disseminate information to investors concerning a price range where trading may begin again on this exchange, so there could potentially be exchange specialists that determine a price point for amc to trade at During the squeeze now, maybe this is exactly what lou has been hinting about, all this time about amc being a managed squeeze and how really it's entirely out of our control. It says a non-regulatory trading halt or delay on one exchange does not preclude other markets from trading this security. It says the sec does not halt or delay trading in a security for news pending or order imbalances, but it can to spend trading for up to 10 days. I'm going to do some more research into non-regulatory halts over the next few days to see in what kind of circumstances they used on regulatory halts and also what kind of circumstances they use these exchange specialists to disseminate information and determine a price range.

Personally, i think this paragraph is very unusual and leaves us apes open to a lot of manipulation, so i do want to do more research to figure out exactly what this really means guys be sure to. Let me know down in the comments below what you think of the biggest ever short squeeze on record 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.