Backstory:
Archegos Capital, a prop trading firm run by Bill Hwang (apparently not a smart man), managed to completely blow up his $80 billion portfolio in true WSB fashion, the sheer idiocy and magnitude of this blowup makes us all look like mormon choir boys. This fucking guy had 5:1 leverage on $16 billion of capital invested in china growth/tech at the peak of the fucking tech surge, and didn't fucking de-leverage during the most obvious sector rotation ever 6 weeks ago. It's all gone now. Liquidated. To zero. He was heavy into china tech / growth stocks on 5x margin, $80 billion portfolio. Poof.
Margin calls probably started on Monday of last week, where forced liquidation took place. Rumor has it, all of the different PB's this guy borrowed margin from agreed to an orderly selloff during the forced liquidation, but some unknown PB front ran them like a total cocksucking wench and liquidated all at once, causing a violent crash in BIDU and Viacom. Source: https://twitter.com/EnergyCredit1/status/1376211566056644608?s=20
Here's more on the backstory:
https://twitter.com/DoveyWan/status/1375769056486203394?s=20
Positions: any CS 4/16 p. I'm betting Credit Suisse takes a huge loss from this poor line of credit, and it hits the news in the coming weeks.