Trading StatementTrading Statement

LIBRARY

Extreme trading events that made or destroyed fortunes. The best lessons come from history.

Short Squeezes

2

GameStop Short Squeeze

2021

Retail traders coordinated on Reddit to squeeze heavily shorted GameStop stock, sending it from $17 to $483.

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Volkswagen Infinity Squeeze

2008

Porsche secretly cornered VW shares, triggering a historic short squeeze that briefly made VW the world's most valuable company.

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Market Crashes

4

Black Monday

1987

The Dow plunged 22.6% in a single session — the largest one-day percentage drop in stock market history.

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Flash Crash

2010

The Dow plunged nearly 1,000 points in minutes before recovering, exposing the dangers of high-frequency trading.

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COVID Market Crash

2020

The fastest 30% market decline in history as COVID-19 became a global pandemic, followed by the fastest bear market recovery ever.

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2008 Financial Crisis

2008

A housing bubble and subprime mortgage collapse triggered a global financial meltdown and the largest bankruptcy in US history.

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Fund Blowups

4

LTCM Collapse

1998

Nobel Prize-winning fund with 25:1 leverage collapsed during the Russian debt crisis, nearly triggering systemic failure.

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Barings Bank Collapse

1995

A single rogue trader destroyed the UK's oldest merchant bank (233 years old) by hiding $1.3B in unauthorized losses.

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Archegos Capital Collapse

2021

Bill Hwang's family office used hidden leverage across multiple banks, causing $20B+ in losses when positions unwound.

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Lehman Brothers Bankruptcy

2008

The fourth-largest US investment bank collapsed with $639B in assets, freezing global credit markets.

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Crypto Events

3

Mt. Gox Hack

2014

The exchange handling 70% of all Bitcoin transactions lost 850,000 BTC to hackers, setting back crypto adoption by years.

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Terra/Luna Death Spiral

2022

$40B+ in market cap evaporated in one week as the UST algorithmic stablecoin entered an irreversible death spiral.

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FTX Collapse

2022

The $32B crypto exchange collapsed in days after revelations that $8B+ in customer funds were missing.

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Legendary Trades

3

Soros Breaks the Bank of England

1992

George Soros bet $10B against the British pound and made $1B in a single day when the UK was forced out of the ERM.

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Paulson's Big Short

2007

John Paulson made $15B betting against subprime mortgages — the largest single-year profit in hedge fund history.

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Jesse Livermore's 1929 Short

1929

One of history's greatest speculators made $100M shorting the 1929 crash, but later lost it all.

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For educational purposes only. Not financial advice. Higher returns come with higher risk. Never risk more than you can afford to lose.