Arthur Hayes Profile picture
Jan 13 5 tweets 1 min read
.#SBF_FTX

1/

The exchange should never lose money if a customer gets liquidated. There is no excuse giving you hedge fund alameda an account with liquidation turned off.
2/

All this talk about what Alameda did is misdirection. It doesn’t matter how they hedged or didn’t hedge, or what dogshit was in their portfolio.
3/

If you want to do some explaining tell us why you thought it was a good idea to give your hedge fund an account with the liquidation feature turned off?
4/
If you had liquidated Alameda like any other FTX punter, FTX would still be operational. It’s just that simple.
5/

So stop talking about Alameda and tell us how you approached risk management at the FTX level. Why were some clients treated differently than others. I am keen to understand why you thought turning off liquidation on a $bn notional position was prudent.

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Arthur Hayes

Arthur Hayes Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @CryptoHayes

Jan 13
.#SBF_FTX

1/

Before I finish, let’s do some math.

Assumptions:
FTX deposit base = $15bn
Alameda position notional = $1.3bn
Processed withdrawals pre bankruptcy = $5bn
2/

First let’s assume that alameda’s position goes to zero for a loss to FTX of $1.3bn.

Net of customer deposits that’s $13.7bn
3/

Next we subtract the amount of processed withdrawals and come to $8.7bn.
Read 6 tweets
Nov 9, 2022
1/
What happens now that Baron CZ passed on FTX bailout and SBF is bankrupt. The next question is who could save FTX?
2/
If CZ, the richest person in #crypto, can't do the deal. No one can do the deal.
3/
FTX customer deposits will only see recovery in a bankruptcy court, and that will take many years to sort out. Mt Gox creditors still haven't received funds and it's been almost a decade.
Read 12 tweets
Nov 4, 2022
1/
There is a #China health presser tomorrow, if this tweet is true, and the rumours onshore that Xi may ditch COVID zero in a matter of weeks it might explain a few things.
2/
When I look across the assets I track I see strange things.

$CNY up 2%, massive!

$GOLD $SILVER $OIL $BTU all ripping while SPX and Nasdaq are unch.

2-yr yields barely off their recent highs post FOMC.

Jobs report was decent so JayPow will stay the course. Image
3/
And #crypto ripping too.
$ETH sliced through $1,600.

Let's Go China! Image
Read 4 tweets
Oct 25, 2022
1/
Guess who is pumping $BTC and $ETH
2/
The US Treasury is thinking about supplying the market with more short term T-bills to alleviate a shortage.
3/
Money Market Funds like short term T-bills, but there ain't enough so they park their money in the Fed's reverse repo facility. It earns a similar yield. Credit risk is also a factor, but let's keep this simple for twitter.
Read 8 tweets
Oct 6, 2022
1/
Another episode in gimme 'dem dollaz!!!

All the central banks be dialin' for dollars at the NY Fed.
2/
The NY Fed creates and lends dollars to "friendly" central banks, which is called Central Bank Liquidity Swap Operations.

nyfed.org/3ebqn6l
3/
They did a "test" trade with the ECB and SNB totaling $3.3billi that settled Oct 6th. Gotta make sure the pipes work, don't want to get sabotaged like Nordstream I and II.
Read 6 tweets
Oct 3, 2022
1/
Curious thangs going on with $ liq
2/
Big jump in $ liq driven by a reduction in reverse repo balances.
3/
Here is the big drop in RRP balances today, ~$180bn. No idea why, but the Fed did have a meeting today, no indication on what they discussed.
Read 6 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!

:(