Hi, i'm matt and i'm here to give you my how-to guide on how to get absolutely destroyed in the stock market, how to get absolutely wrecked by the stock market. The star of today's show will be gabe, plotkin and melvin capital, but make sure you stick around. After that, because i have a little bit of a bonus story related to two massive players in wall street who are currently at each other's throat before we get into all that, though, if you enjoy this type of content, don't forget to join up with the moon Gang by hitting the subscribe button and hey help out with that algorithm by destroying the like button with all that being said, let's hop right into it to best explain this story to best explain how you can get absolutely wrecked in the market, particularly by the apes. We have to rewind a little bit over a year and the star of this show right here: gabe plotkin, who is running melvin capital, well, remember when he decided to take that bet against roaring kitty wall street bets and all the retail traders who supported gme.

Well, he was the guy who took that bet against him and he ended up losing 6.8 billion dollars. In a month. That's brutal. Over 54 of his funds, capital was lost, disappeared, taken away by the apes, picking up their attendees off the ground and going back into the forest.

It was brutal. He eventually got bailed out by ken griffin of citadel and also steve cohen of 0.72, and it now it's kind of weird, because that kept him a little bit alive. But then, if you get into the start of 2022, he was still losing money and then both of these players, ken griffin and steve cohen, are taking money out. Well now we have a new development.

Embattled hedge fund melvin capital weighs unwinding current fund to start a new one. You heard that right, melvin capital, shutting down melvin capital, the embattled hedge fund, run by its once high-flying founder, gabe potkin, has been discussing a novel plan with its investors, under which the firm would return their capital while giving them the right to reinvest that capital. In what would essentially be a new fun run by plotkin, because you know what they say when you're trying to get wrecked by wall street just start a new hedge fund, name it something, and people completely forget the past plotkin according to people familiar with his plans, Has committed to keeping his new fund at or below 5 billion, so basically he wants to downsize, but here's the doozy returning to a focus on shorting stocks once again returning to a focus on shorting stocks. You know that exact thing that caused him to lose 6.8 billion in a month.

That's what he wants to return to. So yes, i get it. Is this a short guide on how to get absolutely wrecked in wall street? It's a short one, but it's one with a proven track record. I really hope you enjoy, but hang on, don't leave.

Quite yet. I have a crazy, crazy, crazy story to share with you. Goldman sachs called out morgan stanley's block trading to the hong kong securities regulator. At first, your eyes might gloss over and you're, like that's boring, but hang on hang on.

It's actually pretty interesting. So first, let me just give you a quick reminder of what block trading is. Block trading refers to the practice of a bank selling a large number of shares in one go to institutional clients off the open market. We're talking about otc not happening on a lit exchange, think dark pulls holders who want to sell a lot of shares may find selling in parts takes longer and can reduce the price as in if you're selling selling selling, that's quite a bit of selling pressure.

That's what it means by reducing price banks tend to bid for all of them, usually at a discounted price to the market. The successful bank then offers these shares to clients at a premium to the agreed price and seek to gain a profit in this way. So this is something that big big players do big size do so: okay, that's what block trading is, but there's a lot of sus stuff that can happen with block trading. In february, u.s regulators opened a probe into block training on wall street.

Looking at whether banks gave hedge fund clients advanced notice about big share sales before they were made public, basically letting the cat out of the bag, something you're not supposed to do. Is it a big deal? It's a massive issue: block trading boomed in 2021 and was at a five-year high of 70 billion last year billion 70 billion. It's a massive massive problem. If you have that kind of money and it's the trades, are being lit out of the bag when they shouldn't and people are front running it.

It's a huge issue and you have people who are kind of the center of it and it happens that the sec likes to look into goldman sachs and morgan stanley, and then this is where the current story gets. Really interesting because remember: goldman sachs is calling out morgan stanley, so basically two players who have gotten in trouble for not playing by the rules of the game. One of them is pointing out the other one saying but he's worse than me. What's going on here's what you need to know it flagged morgan stanley regarding stock price drops shortly before its rival put shares on the market.

So, basically, you have two players who are not really seemingly allegedly, please don't sue me playing by the rules of the game and then one of them's doing it worse so than the other one's like hey, regular he's like. Can you help out on this one wall? Street giant goldman sachs, flagged banking rival, morgan stanley's, block training to hong kong's financial regulator. Goldman sachs alerted hong kong's securities and futures commission three years ago during an informal discussion about share price drops in a few hong kong listed companies in informal discussion like they were sitting there after, like losing more and more money and like i've had it like, and They just were firing off some hot texts to the hong kong, equivalent of the sec and they're like dude. You got ta look into it.

These price drops happened a short while before morgan stanley's brought blocks of shares to the market, so they're, basically saying hey, we're still seeing this issue of someone letting the cat out of the bag and this time around, it's hurting us. So we don't like it. So please, step in. I find it absolutely hilarious when banks who are all doing kind of like the same scummy things are now like calling out and snitching on the other banks doing it if, in the end, it makes the entire market a better place, i'm getting for it, but i You have to appreciate the hypocrisy in it.

Obviously, let me know your thoughts in a comment below i'll catch. You in the next video have a beautiful day.