Today I Want to talk about why Shorts haven't yet faced this giant? Margin Call Even though they've lost tons of money over the last few years, shorting not just AMC but other stocks too, especially tech stocks in the first half this year, What's stopping them from being margin called? Or stay tuned and let's make some money. And now I'll drive straight in with the information so we can see from this article that Carl Icann has been losing a whopping 900 million dollars a day. It's his corporate. Raider Carl Ican has lost 15 billion dollars since the release of an expose by Hindenburg research that's over 900 million dollars a day now.

What's even crazier than the fact that Carl Ican has lost this much money or is continuing to lose this much money is the fact that he hasn't yet been margin called. I Think we have to remember that don't forget: these hedge funds aren't just working with a few million dollars or even a few hundred million dollars. Many of these hedge funds are working not just with billions of dollars, not even with tens of billions of dollars, but potentially hundreds of billions of dollars. And therefore, many of these hedge funds, like Citadel specifically can be losing hundreds of millions of dollars each and every day, even 900 million dollars a day and still not be margin called.

This is because they have such giant cash reserves that have indeed been dwindling over the last few years and especially over the last six months in big tech stocks. But those cash reserves still remain even though they're dwindled again. This article says that I Can Enterprises stock has lagged for years, weighed down by huge losses. It says it's hard to argue about Icann's lackluster performance as of late.

This has been a lost decade for Icann. Enterprise's stock. The stock price has fallen more than 60 over the past 10 years, while the S P 500 has gained about 153 percent. Now, obviously, Federal Prosecutors are investigating Icann Enterprises but so far, no charges have been filed.

Name a question: why Carl Icann is being investigated by Federal Prosecutors And it's because he's been accused of effectively running a Ponzi scheme. maybe? Carl Ican has been lying about the true extent of his losses to other hedge funds and to other Banks and therefore hasn't yet been margin called. You may say. Tom Surely these hedge funds aren't allowed to lie to Banks about the true extent of their losses, right? Surely that's never happened, Ever, right? Well remember, the Arcados use swaps to hide their true positions and likely hide the true extent of their losses as well.

I Do want to explain on the Whiteboard exactly how that looks and exactly what happens as a result, but let's quickly recap on this article. It says: Bill Huang The founder of Arcados was charged yesterday today with racketeering and securities fraud. How Huang hit his positions teaches us a lot about how markets work today. Now again, we know how these Total return swaps work.

It's where these hedge funds can take positions or underlying positions in companies without holding the true shares or without holding the true short position. That way they can hide the extent of their true short position and not disclose that short position by effectively hiding it in different companies, different hedge funds, and different banks. It says, a total return swap is pretty much like owning a stock. You get the gains if the stock goes up and you lose money if the stock goes down, but you technically don't own it either.

Shares Instead, you've got a contract with a bank or with a different hedge fund to get the gains and pay the bank for any losses. And I Think many of these hedge funds out there have been using these Total return swaps to effectively hide the true extent of their losses. and this obviously isn't uncovered until the hedge fund ends up blowing up. So let's quickly explain exactly what supposed to happen in a normal margin course situation and then explain how our chaos was different.

Let's say, for example, a hedge fund has its own personal equity and investor Equity of around 2 billion dollars, they take on five billion dollars in loans from other Banks which is effectively their leverage ratio using what's that at 2.5 to 1 leverage ratio. So with their own equity and the bank loan, they've got a total portfolio value of seven billion dollars. But obviously, if that total portfolio value Falls to five billion or just below five billion dollars, let's say 4.9 billion, they receive a margin call. Now, the bank goes in and sells off that full seven billion dollar portfolio or sells off the now 4.9 billion dollar portfolio so they can recoup most of their money back that they lent out.

But let's say however, that some of these hedge funds have been lying about their true losses and their true portfolio value. And some of these hedge funds actually have a portfolio value of only a billion dollars. That means not only have they lost every single penny of their two billion dollars in equity, but they've also lost most of the bank's money as well. Now, if or when the hedge fund ends up collapsing, the bank sells off that remaining billion dollar portfolio value and effectively takes a four billion dollar loss.

Now again, you might be saying Tom Surely a bank isn't going to take a four billion dollar loss. Surely they'd sell the positions way before then. Surely there's no registered event of a bank taking a giant loss when they wind down a hedge fund, right? Well, again, Bank losses linked to the collapse of Arcados Capital Management now topped 10 billion dollars. Again, these total Bank losses top 10 billion after no mirror and UBS became the latest Global Banks to reveal the true impact of the Hedge fund's failure on their finances.

So again, when Arcados ended up collapsing and the true extent of their losses was revealed, a number of banks took on some heavy heavy losses. It wasn't just one Bank like UBS, It wasn't just two Banks like UBS and Nomura. There was tons of other Banks like Credit Suisse that also lost money too. And that's why these Banks took on some giant giant losses because these hedge funds like Arcados had been lying about the true extent of their losses.

Actually, some of these hedge funds, like Arcados should have been margin called a long time ago, but because they've been lying about their true losses and not making true disclosures, they've been able to hang on for even longer and effectively. That's exactly what Carl I Can is being accused of doing as well. Carl Icann has been losing 900 million dollars a day and is now being accused of running a Ponzi scheme and not accurately disclosing its losses. And again, this may have also happened with Credit Suisse themselves.

As UBS are about to take on a heavy heavy loss speak to hand tweeted, he said, look, something has got to be going on behind the scenes and I continue to suspect it's some form of the January 2021 swap exposure still at play. He said we've had a UBS noting it's on the hook for 17 billion dollars in losses on absorbing credit Suites and a Swiss government also provided a backstop of six billion dollars as Logan tweeted, he said, how can UBS only spend 3.4 billion dollars on Credit Suisse and have the Swiss government backstop the first six billion dollars in losses, but still be on the hook for 17 billion dollars of losses After that, the math doesn't work, so that's effectively a magical 26 billion dollars worth of losses. The UBS is now taking that they didn't for suspect when they paid out for credit Suites Okay, maybe Credit Suisse Also was lying about the true extent of their losses and that's why UBS have had to absorb this additional 26 billion dollars in losses now I Could only guess what kind of toxic position they must have been holding to take on such a giant loss and not properly disclose it. And speaking of which, Crystal has tweeted saying the GameStop Obv is now an all-time highs.

Obv is obviously something I've discussed at lengths on AMC specifically over the last couple of years, but I've never really spoken about GameStop's Obv as well. But again, GameStop's Obv has been doing the exact same thing. Obviously, it rocked it up between January and March of 2021, but has still been climbing steadily since then. the Obv is the on balance volume which effectively works out the difference between purchase shares and sold shares.

And again, the Obvi on GameStop is showing that an additional 5.9 billion shares have been purchased compared to what has been sold over the last few years. Usually when a stock price decreases, the Obv should fall alongside it as more shares are being sold, which causes the drop in price. But obviously in the case of GameStop and Aim see, but actually no other stocks in the entire Market That's not the case because the Obv continues to rise as more shares are being purchased and not sold. and that's obviously because shares aren't being sold.

In fact, the share price is being manipulated downwards instead. and again, we know that in AMC for a fact, as there used to be 4 million retail investors and there's still 3.8 million of Us years later. And that's because retail investors have not sold their shares. By the looks of things from GameStop's Obv, if anything, retail investors have purchased even more shares.

Which again, likely means there's now even more hedge funds that are not disclosing the true extent of their losses, which are likely even larger than before now. Tony Don't worry, it's what you're saying this morning: I Read through 900 plus pages of AMC Discovery posted publicly on the AMC Investor Relations website covering board meetings from 2021 to 2023 and he said I didn't see any discussion about helping shorts. Actually quite the opposite Again, this is something I touched on the other day when actually board members of the AMC were talking about how ape would actually be damaging for the shorts and would likely cause them to close out of their short positions or at least make shorting significantly more difficult for them. Again, it's good to see that Tony Dinaro is agreeing, especially after he's read through all 900 plus pages of data again.

As I've been saying for some time, this is because Adam Aaron is on the side of retail investors. It's just simply these hedge funds that are not disclosed in the true extent of their losses. But when these hedge funds do end up collapsing, all it's going to do is make the situation even worse Because when these hedge funds end up collapsing, it won't just be the hedge funds that take on losses, it will be some major banks that take on very heavy losses as well. All of the money these banks have lent out to these hedge funds is likely going to disappear as well, which again, is likely going to make the banking crisis even worse.

where we may end up seeing some major Banks collapsing too, which as a result is likely going to make the AMC and GameStop squeezes even larger. But guys, be sure to 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 upload a new video. Cheers!.