AMC Apes (including me) have been wrong about many things.
However, we are right about one very important thing:
THEY HAD THEIR CHANCE TO BANKRUPT AMC DURING THE PANDEMIC/WRITER'S STRIKE BUT THEY FAILED
Box Office is back!!!🤑🤑🤑 Big trouble for hedgie🦍🦍🦍🍿🍿🍿#AMC $AMC
72 dollars for AMC when nobody could even go out to watch a movie because of the C word. Now that AMC is hitting big numbers it’s worth under 2 dollars?? Make it make sense other than crime. We know the truth and they can’t close their shorts, keep selling these fake shares short
BREAKING 🚨: How corrupt is the United States? The day after the Justice Department launched an investigation into Wall Street short sellers the largest document storage facility, TD Ameritrade Bartlett Warehouse, went up in flames. They hauled the evidence away ON FIRE in direct violation of OSHA safety requirements. 60 hedge funds were to undergo investigations for manipulative short selling. Authorities concluded that a “falling shelf” took out the entire building’s sprinkler system that was located on the roof.
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The facility was a newer facility outfitted with state of the art fire prevention technology.
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Hedge funds have been under heavy scrutiny from retail investors.
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More specifically from the AMC and GME community after the ‘meme stock’ frenzy early last year, 2021
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Hedge funds have been able to suppress the share price of both these stocks through predatorial short-selling strategies.
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In a Bloomberg exclusive, Gary Gensler states 90%-95% or retail market trades do not go through the lit exchange, but rather through dark pools.
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This happened on February 4th 2022. Just like everything with out government absolutely NOTHING has come from the investigation. No charges. No stop to the blatant naked short selling taking place on a daily basis robbing investors.
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The primary offender of naked shorting of course is Citadel, owned by Ken Griffin. Griffin is Ron DeSantis’s MEGADONOR and #WEF member.
Today is the day! Minions & Monsters opens at AMC Theatres. I have seen it. This homage to old Hollywood is nothing less than a masterpiece of animation. Congratulations to Chris Meledandri, Illumination and Universal. https://t.co/2pqZ6iYcjk
$AMC $GME
🚨The Leveraged Derivative Short
Institutional short positions in stocks like GameStop and AMC can be hidden using a Total Return Swap (TRS), funded by the Japanese Carry Trade.
Instead of borrowing and shorting the stock directly, a hedge fund uses a major bank (Prime Broker) to synthetically replicate the short position, utilizing massive leverage.
Step 1: Funding the Position (The Japanese Carry Trade)
•The Loan: The hedge fund borrows money in Japan because the Bank of Japan (BOJ) keeps interest rates ultra-low.
•The Swap: The fund converts those borrowed Japanese Yen (JPY) into US Dollars (USD).
•The Asset: The fund deposits those dollars with a Prime Broker to fund and collateralize a Total Return Swap.
Step 2: Creating the Synthetic Short (The Total Return Swap)
•The Agreement: The hedge fund enters a private derivative contract (TRS) with the Prime Broker.
•The Cash Flow: If the target stock price (e.g., GameStop) goes down, the Prime Broker pays the hedge fund the profit. If the stock goes up, the hedge fund must pay the broker the difference.
•The Broker’s Hedge: To manage their own financial risk, the Prime Broker goes out into the open market and establishes a structural short position on the underlying physical stock.
Step 3: The Fragility Metrics
The stability of this multi-layered trade depends entirely on two variables tracked by the Carry-to-Risk Ratio:
1The Interest Rate Spread: The difference between high US interest rates and low Japanese interest rates (the profit margin).
2Currency Volatility: How stable the USD/JPY exchange rate is.
As long as the spread stays wide and volatility stays low, the short position remains cheap to maintain.
Step 4: The Macroeconomic Trigger
The entire arrangement begins to break when the macroeconomic environment reverses, squeezing the trade from both sides:
•The Fed Cuts Rates: The Federal Reserve lowers US interest rates, shrinking the yield spread.
•The BOJ Hikes Rates: The Bank of Japan aggressively lifts rates, making the original Yen loan more expensive.
•The Currency Flips: Capital flees the US and rushes back to Japan. The USD/JPY exchange rate undergoes a rapid, volatile drop toward psychological breaking points (like 140.00).
Step 5: The Involuntary Liquidation (The Unwind)
•The VaR Shock: The sudden spike in Yen volatility and shrinking interest margins causes the hedge fund's Carry-to-Risk Ratio to plummet.
•The Margin Call: Because the fund's assets are in USD and their debts are in JPY, the sharp currency shift drastically erodes their collateral. The Prime Broker issues an immediate margin call.
•The Forced Buy-In: If the hedge fund cannot post cash instantly, the Prime Broker terminates the swap.
To protect its own balance sheet, the broker must aggressively buy back physical shares of the stock on the open market to close out its hedge.
This price-insensitive buying triggers the short squeeze.
Full post on exact scenario we’re in after this (follow & rt)
So its Saturday afternoon, and I am reading box office predictions for Q2, and all I can say is
Hey, Rich Greenfield, movie theaters didn't die.
And that shit for brains guy from Motley Fool that insulted me numerus times over the last 5 years, I'm afraid AMC didn't go bankrupt yet and nor I have I shut up.
Sorry, not sorry.