Reinventing the Millennium.

The bleak end of many hedge funds on May 5 made people in the industry feel sorry for them, and they couldn't help but secretly rejoice.

It is very simple to be short, the negative is obvious, and the benefits are very attractive, but the struggle of off-market factors is also extremely terrifying.

Although Yike’s short squeeze in April opened smoothly under pressure, the dominant factor was the short run caused by locked-in options, and the final outcome also ended with a peace deal with a large institution.

However, there are too many shocking things in this wave in May. All the big institutions that were not covered in the previous round were wiped out in this round.

In addition to the calculations, connections, and wrestling shown in the jedi comeback on Monday morning, using the Internet to coerce retail investors into a populist group to squeeze the air is simply... It is simply opening Pandora's magic box!
You know, last week’s short-squeeze market completely ignored the most basic values. At that time, Yike was a standard bearish position. Under normal circumstances, it would inevitably fall, but YIKE went against the trend and rose, and it was destined to be loaded in The textbook squeeze burst.

It is rare for the White House to overturn the ITC's ruling, but whether Internet-based retail investor groups will become a nightmare in the new era, after all, the latter's copying conditions are far less harsh than the former, which makes many institutions can't help worrying.

As for the man behind all of this, it is needless to repeat his evil deeds of igniting the organization with his brutality.

Before the intraday trading on Monday ended, Yike Fangzhuo's information was placed on the desks of many institutions, and his black history and success methods were also widely disseminated.

Only the wrong name, not the wrong bandit number.

This is indeed a veritable "hunter"!
While the financial circles are feeling terrified, public media platforms such as Twitter and Facebook are elated.

All the bad news during the day was automatically ignored, and all the good news was automatically amplified. The announcement of each institution's departure caused waves of public opinion among retail investors.

The effect of holding a group to squeeze the air is great!

Sure enough, everyone is the king of retail investors!
As a matter of course, the perennial institutional harvest and the lingering bad breath after the financial crisis have made many people turn their minds to other stocks.

Is there only one stock like Yike in the market?

Even, there is still no need to consider the bad and the good, as long as you group together and rush in without thinking, you can boost the stock price!

Such voices appeared on Freetrade, Go die, and Twitter, either out of righteous indignation or out of interests, wanting to continue this Yike-style performance.

However, more voices are still celebrating, and they still really feel bad in their hearts.

"It's cool, I bought $1000 this time, it doesn't matter if I pay it or not, it's worth seeing Goldman Sachs like this!"

"Institutions are finally paying for their greed!"

"Which company jumped off the Empire State Building this afternoon? Tsk tsk."

"Bought a 'King of retail investors' T-shirt, wearing it to walk around Wall Street tomorrow."

"Smith, who sells T-shirts, has a new one! The new quotations from Mr. Fang are printed on him! There is also a Chinese version!"

"I read today's news that Yike has suspended its trading. When did it stop?"

"There are still institutions insisting, there are still institutions, there are still institutions!"

Amidst the jubilation, bankruptcy manager Smith's T-shirts were sold out, news spread that the hedge fund was liquidated and even sued by clients, and Fang Zhuo, the instigator, continued to grow rapidly after breaking through 500 million Twitter followers.

Such a still-frenetic atmosphere left some deeply disturbed.

Mien, a senior investor, couldn't help but tweet: "The discussion about Yike is extremely crazy and reckless. This abnormal situation must be contained."

His voice and speeches like this quickly attracted the attention of retail investors.

"What stocks did you invest in?"

"Which fund are you? Paulson's? Are you shorting stocks too?"

"Look up, look up, see which company Paulson's disclosed short position is!"

Compared with the impact of the previous round, this time the irrationality far exceeded that of April, and some people took screenshots of their speeches and spread them around.

Soon, the Milns had to delete their speeches and completely silence them, so as not to cause unexpected troubles and force themselves or their colleagues to the rooftops.

But this has brought new inspiration to retail investors. Although large institutions such as Goldman Sachs and Bridgewater have liquidated Yike’s short positions, they still have major short positions in funds that have to be disclosed in accordance with regulations!

A group of people gathered together, trying to extend the flames of crowding out to a wider area.

On May 5th, Chicago, at 26:08 in the evening, Citadel's paper shredder was working crazily, stacks of documents were destroyed.

As a well-developed "electronic securities market maker", such a scenario is not common.

Amidst the sound of the paper shredder, Alex, the deputy director, took out more documents to be destroyed, while browsing the content of Twitter on the mobile phone.

When he saw with his own eyes that a well-known investor was forced to cancel his account, he had to sigh angrily: "What are these people doing! This is simply a thug!"

"Hurry up and get to work, don't keep paper and electronic materials." Another executive didn't care about Twitter and only focused on the work at hand.

Citadel's "market maker" business is to act as an intermediary role in the transaction, through two-way quotation, as the buyer's seller and the seller's buyer, this time cooperates with the mobile stock trading platform Freetrade for "order flow payment", using powerful computer capabilities Match transactions and earn large profits with very low risk.

However, in addition to being a market maker, Citadel also has hedge funds under its umbrella. This time, it also participated in the short-selling of Yike, and then gave priority to matching its own funds in the process of closing positions today, and quietly made up for some losses from Freetrade.

I am both a seller, a buyer, and a referee, but I am still blown away by the sudden and violent rise in the market.

Alex sighed, feeling that today's encounter was like meeting a black swan that suddenly flew up.

He stuffed the documents in his hand into the shredder, and suddenly heard a knock on the door.

"Open the door, open the door! FBI! Open the door!!"

When Alex heard the sound, his hands trembled and he hurriedly stuffed the documents into the shredder.

There were two more shouts from outside the door, followed by a knock on the door.

"Duang!! Duang!!!"

Alex and his colleagues rushed to process the documents silently.

Two minutes later, as the door was knocked open, the two of them put down the documents at the same time, and raised their hands to indicate that they were not in danger.

A group of people flooded into the office and presented their IDs one after another, from the FBI and the SEC, which belonged to a joint law enforcement.

While going through the procedure, while fixing the evidence, at the same time, he asked Griffin, the boss of Citadel, to come forward.

Alex obediently complied with the request, and said in a difficult way after calling, "I can't get in touch with the boss. Many of his usual affairs are handled by private lawyers."

The head of the SEC, John, who was in charge of the task of "no one can escape" this time, saw that the executive was so cooperative, and asked kindly: "Leave his affairs aside, we are here this time just to inquire about some dark pool transactions and financial derivatives. quality thing."

Alex suddenly closed his mouth, and only gave his final attitude concisely: "I'm going to wait for the lawyer."

John regretted this change of attitude, but wasn't too surprised.

He signaled his colleagues to continue securing and recovering material evidence, and made two more phone calls to inquire about the status of two other operations in Chicago.

The task of this trip is actually not difficult. 60% of the Yike stock trading volume from Freetrade is completed in the dark pool market, not directly on the Nasdaq exchange.

Since the word "black" is in the forefront of dark pool trading, there is naturally a lack of supervision. Some funds that should have been delivered to Freetrade have been delayed, and some derivatives around YIKE options have been liquidated today. Several institutions are planning to run away.

These funds that are intended to be hacked need to be carefully squeezed out.

Compared with the stocks sold by MIGA funds on rallies, these dark funds are a very important part.

John doesn’t know exactly how large this part of the money is, but judging from the materials seized by Citadel, since last week, it has been paying Freetrade millions of buying and selling orders every day, and the amount of funds is astonishing.

Stacks of materials were boxed, and the computers in the office were taken away.

After checking with his colleagues, John bid farewell to Citadel and went to the next target in the dark.

None of them can run away, everyone has to be squeezed!
……

The money collection operation was carried out in the United States. Because the overturning of the ruling was already prepared, customers were afraid that the institutions behind dark pools and fringe exchanges would run away, so they had long been paying attention to their movements and resolutely safeguarded the safety of funds.

This type of supervision is relatively weak, but it is often a bank or a large financial institution behind it, and it is easier to communicate with them.

Whether it is to give money directly or to pay for reconciliation through procedures, money must be seen.

The evening in the United States was the morning in Shencheng. Fang Zhuo received calls from Lu Peining and Kong Yu in his office, and he focused on the protection of gray assets.

And, both sides of the ocean also exchanged views on the second trading day.

As far as the current situation is concerned, no institution can bear the pressure of such a soaring stock price, and they all retreated from the market. However, platforms such as Twitter are still spreading news that some institutions are sticking to the end, thinking about striking while the iron is hot to get more oil and water out.

"Mr. Fang, the Nasdaq Exchange just held an emergency meeting to discuss how to deal with such a small probability of happening today." Kong Yu conveyed the news from the clients.

"Well, I'm listening." Fang Zhuo held the phone, his eyes lingering on the "Quotations T-shirt" on the screen for a few seconds.

"The circuit breaker mechanism of individual stocks may be tested to avoid excessively abnormal rises and falls. In addition, the SEC has also sent a warning. The review of Freetrade is still in progress. If necessary, it may need to be closed for a period of time." Kong Yu said .

If YIKE stock achieves its goals, the SEC must mobilize and uphold justice.

Now the public opinion of retail investors has also attracted the attention of the SEC. If the war intensifies, Freetrade, as the main platform for retail investors to trade, may be forced to close down.

Fang Zhuo thought for a moment: "The SEC will use Yike to implement a 'ban on naked short selling', and the Nasdaq Exchange will also implement a 'stock circuit breaker'. It seems that everyone is paying attention to this matter."

Kong Yu described the impact of this time and said: "President Fang, if you are walking on Wall Street now, no one from hedge funds would dare to stand in front of you."

"Did they all jump off the roof or aim at me with a sight by the window?" Fang Zhuo asked.

Kong Yu thought for a while: "Half and half."

Fang Zhuo smiled and said, "Then I'll do domestic work. When will you return to Shencheng?"

Kong Yu replied, "Almost next week."

He still has a lot of finishing touches to finish.

"Well, everything is going well." Fang Zhuo reckoned that the gasoline man would be fine, and everyone is not doing a one-shot deal. If you really want to give a one-shot deal, then... that can only mean that the customers are not far-sighted enough.

Just as Kong Yu was about to hang up, he suddenly remembered another trivial matter: "Mr. Fang, Xiaobao is under investigation. Someone has leaked Freetrade's customer transaction information."

He paused, then added: "The leaked information mosaiced the specific figures of stock transactions."

The "King of Short Selling" Paulson was confirmed to use Freetrade to go long on YIKE stock, operating **** shares on his account and making a profit of **** US dollars.

As for how much...

Anyway, as long as this situation is confirmed, there must be more serious situations under the water.

Fang Zhuo really couldn't bear it anymore: "Xiaobao, Lu Peining and the others are going to find out again about his and Goldman Sachs's garbage CDO. There is somewhat one-sided friendship between us and him. Objectively, he is indeed Our harvesting has played a positive role, if not, you can take back his private jet at a reasonable price, and it will be convenient for you to travel in the future."

Subjectively, Xiaobao is shorting Yike.

Objectively speaking, the great reputation of "King of Short Selling" and "No.1 Hedge Fund" has played a significant role in drainage from the previous round to this round.

"No problem, I will keep an eye on it. He will probably end up paying a settlement fee in the end." Kong Yu said the usual result of the settlement. Xiao Bao still has money, so he can go bankrupt no matter what.

Fang Zhuo asked a few more questions about the gasoline man's safety, and ended the call, thinking that this private jet could be named "Xiaobaohao".

At 10:30 a.m., assistants walked into the office and began setting up cameras to film the boss's response to the ITC overthrow.

Just after the White Room press conference, Nokia's Simmons and Apple's Cook both expressed their attitudes towards the decision.

Simmons expressed strong dissatisfaction, claiming that "the ITC ruling correctly reflects that Nokia has been negotiating in good faith, while Apple and Echo are still unwilling to obtain patent licenses".

Cook gave a brief welcome, praising White House for its support of innovation.

Fang Zhuo originally wanted to respond on Twitter as soon as possible, but Twitter hadn't resumed access at that time, and later he was obsessed with following the battle situation, and after he woke up, he felt that he should make a formal response in the way of the leader.

"Yike welcomes Baifang's support for the healthy development of the industry."

"The overturn of the ITC's ruling proves that everyone realizes that progress and innovation in the mobile phone industry should not be stifled, and Nokia's past mechanism of abusing patent rights is destined to be eliminated."

"Eco will actively contact relevant manufacturers on patent licensing."

"In any case, we thank everyone for their support for Yike Mobile. I also think that the first half of the competition for smartphones is coming to an end."

The pace of Nokia, Motorola, and Sony Ericsson's products has been very sluggish. Consumers have gradually established their awareness of smart phones, and those that should be eliminated will be eliminated.

Fang Zhuo is very serious in the camera.

He glanced at his own image and was very satisfied with the recorded results.

Video posted via YouTube.

Fang Zhuo briefly browsed the webpage, and opened Quora, wanting to see if there was any incisive analysis of this short-squeeze event other than the irrational sentiment on Twitter.

The incident is hot, and the entry is an answer with high praise.

——"Thank you Mr. Fang, this Yike squeeze made me a millionaire, but... I still miss the feeling of being a billionaire."