If you've been scratching your head over how 2021 has been shaping up thus far - what with the Gamestop-Reddit short-selling saga, the dizzyingly fast collapse of global finance firm Greensill Capital, and now Archegos Capital. 2021 has barely begun but we've already seen 3 major leverage unwinding events unfold thus far, and could there be more to bet?
Perhaps, and I won't be surprised if they are.
(Background)
How did leverage kill 3 companies?
For those of you who have been confused (or haven't been following the news), I'll do a quick summary of all 3 sagas.
GameStop:
A classic David-vs-Goliath plot that was started on Reddit, gathering the masses to target hedge funds who shorted the struggling retailer (the company was the second-most-shorted firm out of more than 6,000 companies listed on NASDAQ and NYSE). Led by Youtuber "Roaring Kitty" (or "DeepF*ckingValue" on Reddit, whose real identity is former trader Keith Gill),...