46sec snip

All-In with Chamath, Jason, Sacks & Friedberg cover image

E104: FTX collapse with Coinbase CEO Brian Armstrong + election results, macro update & more

All-In with Chamath, Jason, Sacks & Friedberg

NOTE

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.

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