Welcome back to channel everyone today, i want to talk about how the tide is changing for the short sellers and how those short sellers appear to be giving up so stay tuned and let's make some money, and now i'm going to dive straight in with the key Information, so the real dive pool tweeted saying: why would short selling firms go long only in a bear market? Now this comes after the recent hedge fund. Sp northstar liquidating their one billion dollar portfolio after reporting a 16 billion loss. I assume they had a 17 billion dollar portfolio and they've lost 16 billion dollars of that portfolio and therefore only have a billion dollars remaining, which they've cashed out and left with the executive left the firm in order to focus on his long. Only hedge fund.

Now again, you may have heard the words long only recently before, if you didn't already know the hedge fund, that lost nearly 7 billion betting against stocks, like gamestop, is raising cash for a new long only hedge fund, so it seems like gabe, plotkin and melvin capital. Aren't the only fund that are switching to a long, only alternative in a bear market, so sb northstar was an internal hedge fund at softbank and softbank has liquidated almost all of the positions in the internal hedge fund, sb northstar, following losses of between six and seven Billion dollars from the so-called nasdaq whale traders - and it even says, citing regulatory findings. The financial times reported on saturday that sb management, northstar's investment manager held a bit more than one billion dollars in u.s listed stocks at the end of 2021, down from more than 17 billion dollars a year earlier. So it seems like tons of these.

Hedge funds are liquidating their short positions to go long only but as dark paul asks, why would those short selling firms go long? Only in a bear market he said a bear market is a short playground. They don't think short term, even though they go after volatility and stocks that are detached from fundamental values, and he said it's because they know that transparency is coming and they can wave goodbye to that gray area. Previously things like naked short selling, even though they were illegal, the sec, the fbi, the doj and everybody else basically did nothing about it. But darkpool believes that now transparency is coming due to all the changes in regulation and the massive increase in retail investor interest, and he said mid caps are going to blow out the short sellers once the cost to borrow starts to rise system wide right now.

We're obviously seeing that cost to borrow rise in gamestop, but many many other stocks across the market still have a cost to borrow of between 0.5 and 1 per year, but obviously, as the cost to borrow starts to rise in all of these smaller companies, it makes Borrowing shares harder and harder and more and more difficult, and it means that shorts will struggle more and more shorts, won't just be struggling on. Gamestop and amc they'll be struggling on every single one of their short positions, and he said this dovish approach to lending has sent the economy into a tailspin. Lending is good for growth, but not when it's focused into speculative plays such as nfts, where people made millions. He said we're in an economic bubble super cycle where banks have offered more loans than they were able to systematically handle.

In 2008, banks were leveraged by a ratio of 12 to 1 maximum. This time round they are levered 100 to 1 and above citadel, for example, is levered eight to one. But some banks, like goldman sachs and their derivative positions, are leveraged over 113 to one, and he said the fed can take a hawkish approach, but it's not easy to increase interest on 30 trillion dollars worth of debt without causing an economic crisis. The market can continue like this for a while before the big crash, but it's only a matter of time now you may know john hempton, a short seller from his recent interaction with corey and this user.

Here on twitter, the user tweeted saying we are not nervous. We are cool, calm and collected john replied, saying yes, you're, not at all hysterical about naked short selling and stock manipulation. The user replied saying maybe some are, but my shares just hit long term gains. What's your opinion on the no halt on the move up to 34 yesterday, but a halt down on a down tick.

John replied, saying: markets have volatility rules, because these halts are actually based on a moving average price, not necessarily the opening or closing price. But john also said. Really. If you pay enough to brokerages, you can get them to call the volatility halts for you and he said it's good to be the king.

Now obviously, corey replied to this tweet saying: does money buy hulks and also he picked up on the fact that john said it's good to be the king corey's wondering if jon is the king in its instance, or maybe it's somebody else like citadel and ken griffin For example, obviously, when people have enough money, like ken griffin, they can basically buy whatever they want and they can basically buy their way out of sec investigations and basically buy their way into volatility, hooks that benefit them, but a little while later the average ape tweeted About john hempton, giving up on his aim, seeing gamestop short position and said that short hedge funds are giving up and they are admitting that they can't win guys. If you didn't already know, mumu and futu have just officially announced that future does not accept payment for order flow, and therefore you don't have to worry about your trades, going through sketchy, dark pools or being given to citadel and right now. You can currently get five free stocks worth up to three thousand five hundred dollars each when you sign up to moomoo, using the link in the description below and make your first deposit mumu also recently won the award for being the best trading platform in the fintech Breakthrough awards, moomoo is also entirely commission. Free has tons of technical indicators and advanced charting tools, moomoo publishes daily short selling data position, cost distribution and much much more moomoo is also incredibly easy to use very customizable and will help you to trade like a pro so guys be sure to sign up to Moomoo using the link in the description below to get up to a total of 17 500 in free stocks, john tweeted saying, as for amc and gamestop for me, he's signing off and also said, i don't know which cards ryan cohen is playing.

He has a better hand and he is not likely a bankruptcy risk. He said that ryan cohen is also a better player, but it is a tough hand, so it seems, like many shorts are starting to give up the profession of short selling, even though we're in a bear market because they've taken on such significant losses over the last Few years, i think, we'll start to see more and more short, only hedge funds giving up over the next few months and turning into long only hedge funds, soon after i do also think that amc and gamestop will basically be their last stand plays and the last Short positions that they actually give up on in many of their short positions on other stocks, not including amc and gamestop, they haven't created synthetic shares and naked shores and therefore they can close their legit short positions and not take on too significant of a loss. Many of these hedge funds may be able to escape with only a few billion dollars in losses because they didn't naked short many of these companies, but obviously on companies like amc and gamestop, where they did naked short and they did create billions and billions of naked Shares or synthetic shares they obviously can't close these positions without going entirely bankrupt, and therefore many of these short sellers that don't have naked positions right now will likely be closing down chop over the next few months and turning into long-only hedge funds. But obviously any of these short sellers that do have naked shorts on amc and gamestop are likely to give up on their other short positions.

First, trying to make a last stand on amc and gamestop, so they can at least avoid entire bankruptcy. But obviously i do believe we are in the end game and it's only a matter of time before these short hedge funds that are trying to give up on their other short positions, have to give up on their amc and gamestop shorts as well and just admit Defeat and admit bankruptcy. I found this brilliant quote and i never knew this quote actually came directly from warren buffett, but he said only when the tide goes out. Do you discover who's been swimming naked? This is a quote in reference to the overall stock market and, more specifically, to naked shorts.

He says only when the tide goes out. Aka when the market crashes, do you discover who's been swimming naked, aka massively over leveraged and holding massive amounts of naked short positions? Obviously, when the market crashes, any of those hedge funds that have those massively irresponsibly over leveraged long positions, end up being liquidated, which obviously causes short squeezes in some of the more heavily shorted stocks, exposing those companies that hold massive naked short positions. So therefore, warren buffett is saying that when the market crashes, we will discover which hedge funds are holding those naked short positions that are massively over leveraged. An unusual wales, tweeted saying harvey pitt.

The former sec chair has said that the rules do not go far enough. He said there should be zero instances of naked short selling. Therefore, even the former sec chair is admitting that naked short selling does still exist on massive massive levels. This is a vast difference to this time last year, when basically everybody at the sec or everybody that worked for any hedge fund completely denied the existence of naked shorts.

They were saying that naked shorts did not exist and that you are crazy if you believe the existence of naked shorts. But now even the former sec chairman harvey pitt is saying that naked shorts do exist and there should be zero instances of naked short selling. But the rules do not go far enough, but, interestingly enough, this user says fyi. I received my stock and options trading license back in 2005 and this was the exact same thing being said back then 17 years ago.

Now, obviously, we know that basically, nothing has changed over the last 17 years, but he said, let's hope, there's some actual reform, given the amount of retail participation this time around now. I believe this is what darkpool was hinting about earlier. These hedge funds know that transparency is coming because the stock market is now just far too exposed to that retail presence. When the stock market was full of solely institutional traders, they basically did not care about the corruption because they knew how to make the corruption work.

For them, but obviously now retail investors are investing in the market in massively large numbers and obviously corruption does not work for us and we are demanding change. These short sellers know that change is coming. They know that transparency is coming and they know that no longer can they get away with these grey areas, such as naked shorting. Now, interestingly enough, somebody that does seem to be fighting back against the corruption is the uk's financial conduct authority.

Angelo tweeted saying the fca or financial conduct authority and the bank of england will undertake a review into the governance market oversight and risk management of the london metals exchange after a massive short squeeze led to weeks of turmoil that paralyzed the nickel market. Now again, this may just be more false promises or lip service by the fca and the bank of england. Saying they'll perform an investigation, but not actually doing anything credible. I for one hope.

The fca and the bank of england actually perform a proper investigation, and that ends up with some criminal sanctions or criminal sentences. Something else, i think, is very, very interesting that could suggest that ryan cohen, adam aaron and patrick bain are all working together. Is this tweet here from the real dark pool, there's an extract here that says byron who did not respond to an email requesting further comment was prepared for his detractors. He said he saw the digital dividend as a litmus test for the sec to determine whether they're in the business of protecting american retail investors or, if they're, still in the business of protecting wall street cronies.

Byron said, the digital dividend was a well-planned instrument and it had been carefully vetted by a high-powered white-collar crime. Lawyer. Who's also worked with a drug enforcement agency. Maybe adam aaron and ryan cohen have been creating all of these little litmus tests for the sec to determine what side the sec is truly on.

Obviously, adam aaron's investment into highcroft mining would have unveiled if there was new synthetic short positions taken out against highcroft, and i think ryan cohen's game stopped dividend and stock split could be another litmus test for the sec to determine what side they're really on guys be Sure to let me know down in the comments below what you think about the tide changing for the short sellers and those short sellers giving up and as always guys if you enjoyed this video, be sure to check out some others. Alternatively, subscribe the channel and ding that notification bell, because that way, you'll be alerted. When i upload a new video cheers.