How the collapse of FTX and APE’s T+90 will result in the MOASS. The ultimate guide to to the coming squeeze
This is going to be a bit extensive, but should be easy to understand. But let’s start start diving into why the squeeze is rapidly coming
PART 1: COLLAPSE OF FTX & AMC’S COST TO BORROW
You might be asking, how is the collapse of FTX connected to AMC and it’s cost to borrow? Well on Wednesday, Changpeng Zhao (The CEO of Binance) began pulling funds out of FTX from their FTT token, which resulted in the company losing 90% of it’s value by the end of the following day. At that time, AMC’s cost to borrow was around 17% and was slowly dropping for some time before all of this happened.
The following day, FTX announced that they’ve entered Chapter 11 proceedings and at the same time, AMC’s cost to borrow shot up to all time highs because there is no longer easy shares to borrow for the brokers and market-makers. I’ll explain this further down.
PART 2: EVIDENCE OF SYNTHETIC SHARES HIDING IN AMC FTX TOKENS, BITREX REMOVES AMC TOKENS
The reason why AMC’s cost to borrow has been so low, and shares available to short continued to appear, is because market makers and short HFs have been using FTX tokens and Total Equity Return Swaps associated with these tokens to print fake tokens, rehypothecate these short shares made from these tokens with a supposed 1:1 share to token ratio, and use these fake shares from FTX to push down the price of AMC with the guise of shares being available to short because of these tokens and equity return swaps.
As we all know, these tokens are supposed to back the equity at a 1:1 ratio. But if we own over 85% of the float, institutions own over 28% of the float, ETFs own 5%, reported short interest over 20%. Where did 400M+ extra shares come from? Well, I got evidence of synthetic shares down below.
Again, these tokens are supposed to back the equity at a 1:1 ratio, but as we see here there are 400 MILLION SHARES OF AMC THAT CM-Equity and FTX ARE (NOT) BACKING TO THESE TOKENS, I’ll explain why in a moment, BUT IT GETS WORSE.
Looking on Bittrex, there are 625 MILLION SHARES worth of tokens, totalling over 1 BILLION shares between FTX & Bittrex, where only 513 million shares exist.
And here’s the wild part, Bittrex obtained and issued these 625 MILLION AMC tokens through Alameda with no collateral to back them on the day prior to the buy button being pulled to SUPRESS THE PRICE. But now these tokens are being delisted and removed as they were part of Alameda (The hedge-fund of FTX), that is now bankrupt.
Let’s get to the smoking gun evidence that these tokens are not backed by AMC.
Looking at their balance sheet above, they do NOT own any shares of AMC, rather FTX or market-makers using FTX hid their synthetic shares in USD token assets. Hence the 5+ billion in USD liabilities on their balance sheet. Apparently they did own shares of Robinhood, hence Robinhood dropping upon FTX’s bankruptcy.
What does all of this mean? Market-Makers and Hedgefucks can no longer use the tokenized security to short the stock, hence the shares available to short dropping to basically zero and the cost to borrow skyrocketing on the day of bankruptcy.
PART 3: APE’S INCOMING T+90 DATE (NOVEMBER 22)
To add additional insult-to-injury to the already severely-screwed short sellers, we have T+90 day coming up on APE pretty soon. Why is this important? Well as we all know, AMC issued an APE dividend as an IPO on August 22.
Here’s the fun part, the APE dividend was supposed to be settled on the same day (T+0) as it was issued, however market makers Failed to Deliver nearly 100 million shares of APE within the ordinary T+0 and T+2 parameters. Meaning “syndicates” were created upon public offering, hence the shills pressuring everyone to sell their APE dividend. As a result, by the 22nd of November, those who issued APE as a “syndicate” (FTD) will be margin called, their funds will be frozen, and their shorts on APE & AMC will be liquidated. We’ve seen this happen on Overstock and Newegg Commerce around 90 days after their dividends, and APE will almost-certainly follow suit.
PART 4: JUNE 2021 “GAME STOPPED” CONGRESSIONAL REPORT
As everyone should know, Market-Makers and Hedge Funds pose a huge systemic risk to financial markets with their huge short positions, especially with their short positions in AMC. As we see here, AMC posed the most value risk to short sellers compared to all other stocks that were violently running in January 2021.
In addition, AMC’s collateral requirements that day ROSE TO 118 PERCENT. THE HIGHEST OF ALL STOCKS TRADING THAT DAY, plus the trading activity on Apex Clearing resulted in further increases to the value at risk.
So in conclusion, AMC is on the verge of MOASS because market-makers and hedge funds can no longer use tokenized AMC securities to print and inflate the amount of shares that can be borrowed, nor keep the borrow fee rates down. APE’s T+90 day is rapidly approaching and market-makers, HFs will face short-position liquidations resulting in the price of APE to rocket with AMC following suit. Plus they can no longer hide their short-interest within these tokens and must start buying back all the synthetics they’ve created because of the skyrocketing costs to short AMC, and because of the tokens that no longer exist.
I’ve already said too much for today, I will see y’all on the moon🌙🦍