E104: FTX collapse with Coinbase CEO Brian Armstrong + election results, macro update & more
All-In with Chamath, Jason, Sacks & Friedberg
00:00
The Dynamics of Gamification in the Stock Market
When a highly levered hedge fund runs into trouble, other hedge funds will force a margin call and a stop out, which can lead to a stock market crash./nThis dynamic is why we see a lot of gamification in the stock market, as it helps to keep these highly levered hedge funds solvent. If they run into trouble, they will become insolvent and illiquid all at the same time.
Transcript
Play full episode
