Super Spender-Chapter 339 - 333: Hurting Others is not Beneficial to Yourself!

Chapter 339: Chapter 333: Hurting Others is not Beneficial to Yourself!

Translator: 549690339

But… Isn’t this too brutal?! This is clearly a trap set for NaspersLimited, and it has cost so many people! The speed at which the opponent shorted was just too fast. Those with even slightly delayed information had no time to close their positions. By the time they wanted to, they found that closing their positions would make no difference to them being forced to close. Needless to say, they wouldn’t close their positions immediately.

Even the banks, who know the inside story, didn’t have time to react. You can imagine how it was for everyone else. The NaspersLimited account wasn’t a secret to the banks. Whether it was Lawrence Rodger or Oscar Blair, they were both stunned when they heard the news… Are you kidding me?! This simply doesn’t make any sense at all!

Their next move was clear to everyone. Finn Lewis was going to act, and it was going to be bad for NaspersLimited on the futures market, putting at risk a cash loss of 160 billion Federal coins. Could the stock price of NaspersLimited stay afloat? Investors aren’t fools. By then, the price of NaspersLimited stocks would probably drop to nothing.

The most crucial factor was the 200 billion Federal coin futures. It was nothing but a massive bait. If Finn Lewis continued to short, he would risk an immediate margin call. Would NaspersLimited keep putting up margin? If they didn’t, they’d get a margin call and would immediately lose 160 billion Federal coins.

If they put up the margin, based on NaspersLimited’s leverage, they would likely need to commit about 10 billion Federal coins in margin, equivalent to a 200 billion Federal coin short sell. Finn Lewis also used leverage, but he needed to commit more than 10 billion Federal coins.

But if NaspersLimited increased the margin, it meant that if it were forced to close again, the losses would be even greater than 200 billion! If they didn’t want to lose more, they would have to keep increasing the margin. This was a never-ending cycle, unless they had more money than the opponent!

Right now, it wasn’t just limited to these heavyweights. There were also individual investors who were continually short-selling. To maintain this price, Finn Lewis was practically single-handedly propping up the entire international gold price! The cost of this, however, was that Finn Lewis was running at a loss!

In other words, he was causing harm without benefiting himself. Was this all just for Activision Blizzard? Really? Lawrence Rodger and Oscar Blair couldn’t help laughing bitterly. Both shook their heads, speechless. Dude, isn’t this asking for trouble? They offered an 80% premium, you could have just sold it and been done with it. Why all this fuss?

Once the gold price was maintained, under the gaze of global financial investors, the funds in Finn Lewis’s hands turned towards the foreign exchange market, using the same tactics to begin short-selling the South Federation currency and the Pound!

Upon learning of his actions, Matthew Chan, Lawrence Rodger, and Oscar Blair couldn’t help but slap their foreheads. This guy is nuts! The foreign exchange market… refers to the exchange rate of a country’s currency

Moreover, meddling with the foreign exchange market could offend the officials of that country! Because if you meddle with the currency, it’s akin to tampering with their economy. If a large-scale panic ensues, it could affect the entire country’s economy. Given the globalization of the economy, whatever happens will affect the global economy!

Of course, shorting the foreign exchange market isn’t the same as shorting futures. After all, foreign exchange impacts the entire country’s economy. It’s not like futures where, if you have enough money, you can short as much as you want. However, the same issue arises with foreign exchange. If a large number of short positions crop up in the market, it could easily spark a significant panic.

If this prompts a trend of copycat actions, it would immediately affect the stock market. If the stock market begins to fall, it signifies that the country’s economy isn’t performing well. If the country’s economy isn’t doing well, the currency will naturally depreciate. If the currency depreciates, the foreign exchange will drop, and if the foreign exchange drops, the stock market will follow suit… This is how a vicious cycle forms.

Most people can’t see this depth. They only sway with the market fluctuations. However, these ordinary people form the main forces in these markets. That’s why it’s a domino effect. This is also why many countries knowingly throw money into rescuing the market, even when they know that the money they put in will be pocketed by the international investors, but they have no choice but to keep throwing money to save the market.

Just like the 1997 Asian financial crisis, international investment groups led by Hawking reaped profits from various Asian countries. Except for Pearl Island City, which didn’t profit because Flame Nation stepped in to save the market. But Hawking didn’t make losses. Although not earning much, the money invested by Flame Nation officials and Pearl Island City officials was wasted.

This is why these international financial investors are not well-liked by officials of various countries, and Finn Lewis’s behaviour is… it’s absurd! But no one could say anything because they had opened their markets for investment, and they couldn’t stop it.

Due to the dramatic and terrifying slump in gold, the exchange market had already started to drop. At this time, Finn Lewis directly used a 1:100 leverage, and placed a short sell of 10 billion Federal coins. Although Finn Lewis spent 10 billion Federal coins, this was a 1:100 financial leverage! This meant that the leveraged funds reached 1,000 billion Federal coins!

Although the risk of 1:100 leverage is very high, extremely high! But who on earth could withstand it, when they had sufficient margin?! Lots of margin like that, even if the Great Alliance Nation officials stepped in, wouldn’t cause a margin call.

So, the moment Finn Lewis’s short sell order was executed, the foreign exchange market faced the same situation as the gold futures market. To stop the losses, what could they do? The bankers, without a second thought, decided to short-sell, taking advantage of the fact that ordinary people couldn’t react that quickly. However, financial institutions could. 𝓯𝑟𝓮ℯ𝘸ℯ𝘣𝑛ℴ𝘷ℯ𝓵.𝘤𝑜𝑚

They definitely reacted faster than ordinary people did. In the end, the losses were shouldered by the ordinary people. Bankers would suffer very minimal losses. Of course, this depended on the scale. These bankers tended to have a lot of funds. Once they started short-selling, a storm would immediately form.

In fact, they didn’t even need to continue short selling, that one transaction instantly triggered large-scale copycats. At this point, Finn Lewis’s goal was achieved, and the Dow Jones Index in LD Securities trading market began to plunge in response..