The disk on July 25th is destined to be written into the history of Wall Street and Short Selling that year--
Not as a success story, but as a textbook example of a classic stampede.
From the opening to the closing, the stock price of Tesla fluctuated violently between 275 and 291 US Dollar.
Every breakthrough of the integer mark is accompanied by the double peak of Short Sellers Stop-loss Selling and chasing orders.
Trading Volume hit a new high for the year, and Turnover Rate far exceeded normal levels throughout the day.
After the market closed, the transaction data on Bloomberg Terminal was still being repeatedly dismantled by analysts from major Hedge Fund around the world.
New York, London, Hong Kong--Trading departments in different time zones are doing the same thing almost at the same time:
Cross-compare every large transaction during the day with the known Short Selling seat,
Trying to figure out which funds were hurt the most in this debacle, which funds have quietly left the market, and which ones are still gritting their teeth.
Midtown Manhattan, Morgan Stanley The floors of the prime brokerage department are brightly lit.
The analysis team responsible for Hedge Fund customer margin monitoring has been working in front of the computer for more than ten hours.
As Tesla's stock price continued to rise slightly after the market closed, their risk control Model kept popping up new warnings--
Several institutional accounts that previously held the heaviest positions on Tesla, Short Sellers, are seeing their maintenance margin gaps expand at a speed visible to the naked eye.
The back payment notice has been sent out, but few companies responded immediately.
"They no longer dare to face their accounts."
A senior risk control manager took off his glasses and rubbed the bridge of his nose, then took a sip of the already cold coffee.
"At this price, making a deposit is equivalent to throwing money into a bottomless pit.
Cutting the flesh and leaving the market is the only option.
But the meat cutting itself will push the stock price even higher - it's an endless cycle."
Meanwhile, Explorers Club.
White-Haired Old Man is sitting alone on a leather chair. On the coffee table in front of him is every sell order marked by him in today's trading.
and a Risk Exposure evaluation report from PB Departments.
There is a number marked in red on the last page of the report--
If his fund closes all its positions at today's closing price, the final loss will be enough to hit the bottom of its annual performance.
Several other people did not come, and he did not ask them to come.
From today's intraday transaction details, he has seen too many familiar account seats closing positions--
They were all trying to extract the bullets before he issued the liquidation order.
He turned to the last page of the Risk Exposure report, picked up his cell phone and made a call to Trading Desk.
After the call was connected, he only said four words: "All positions will be closed tomorrow."
After hanging up the phone, he turned the phone over and placed it on the coffee table. He slowly opened the Whisky wine bottle and poured two fingers of wine into the cup.
The moment I raised my head to finish drinking, the sound of the ice cubes in the glass hitting the wall of the glass passed hollowly across the corner of my mouth.
He put the cup on the coffee table and said to himself, "It's over."
On July 26, the opening bell of Friday and NASDAQ has not yet settled.
Tesla and Buying Pressure have surged in like a flood that has opened.
The opening price was nearly ten US Dollar higher than Thursday's closing price, and Trading Volume in the Call Auction stage once again refreshed the record of the previous trading day.
Hidden in the Buying Pressure torrent are batches of Short Sellers funds that are eager to stop losses and close positions--
Their buying actions are hasty and impatient, and every market price order of more than 100,000 shares reveals the extreme struggle of the decision-makers behind them.
After opening slightly lower from 275, it pulled to 280.
From 280 to 285, stop loss orders of Short Sellers are piled up in front of every integer mark.
But the bulls Buying Pressure didn't give them a chance to breathe at all, and swallowed up all the piles of stop loss orders in one mouth.
The intraday high hit approximately 295 US Dollar, the highest point of the year since January 2019.
At the close, it fell slightly to around 290 US Dollar.
Although the gains narrowed throughout the day, Trading Volume continued to maintain a high level.
In two days, the market value of Tesla increased by more than 8 billion US Dollar.
White-Haired Old Man's fund closed the last batch of Short Position near 289 US Dollar.
When the sell confirmation order popped up on the trading terminal, his finger paused on the mouse for a few seconds before clicking to close the window--
After clicking, this whole long battle from 300 to 178 and then back to zero is officially over.
He needed a few seconds to digest the result that had been played on the screen countless times.
He wrote the last thing in his notebook--
The final loss figure is Short Selling, then close the notebook and put it into the inner pocket of the suit.
Bloomberg posted a special analysis after the close, titled "Tesla Short Sellers rout: from 178 to 295, a costly stampede."
The article details the timeline of this round of Short Selling--
Since Era Vanguard submitted 13D on Nvidia at the end of last year,
By the end of January Short Sellers reached an agreement Short Selling Tesla,
By May, Muddy Waters and Citron joined the market with high profile, and the stock price hit the edge of the cliff of 178.
Then Era Vanguard used real gold Silver to catch all Selling Pressure near 178, and then the two lines of battle simultaneously scanned Tesla and Nvidia.
In the end, the SEC closed the case, Muddy Waters admitted its mistake, and Citron closed its position silently. The article concluded:
"The cost of this stampede cannot be accurately calculated--
The companies with the biggest losses, Hedge Fund, all hid behind vague subjects such as 'large transaction losses' and brushed them off in one go.
But in the transaction details of NASDAQ, every stop loss order is confessing for them."
At the same time, analysts at domestic securities firms were also dismantling the transaction data of Tesla overnight.
Analysts from the Zhongxin Construction and Investment New Energy research team wrote in the research report:
"The higher-than-expected delivery volume of Tesla in the second quarter was just the trigger. The real driving force was the stampede covering of Short Sellers after the stock price approached the stop-loss line.
From 178 to 295, the essence of this market is not that Fundamentals has undergone a qualitative change.
Rather, Short Sellers continued to underestimate the depth of ammunition and willpower of the bulls for eight months.
When the SEC's case closing letter confirms that the source of Era Vanguard's funds is legal and compliant,
Short Sellers The last piece of logic that could suppress the bulls - 'the funds of the bulls are unsustainable' - completely collapsed.
The next liquidation stampede is just a matter of time."
The analyst also added a line of fine print in the notes to the report--
"This is not Tesla's first Short Squeeze, but it is probably the most tragic one."
At the same time, at the other end of the country, Henglong Group also experienced a simultaneous surge in Friday.
Zhao Chen explained to Liu Mingyu on the phone:
"Change announcements are issued in a standard format, and the wording does not need to be too complicated--
Just say that there have been no major changes in the company Fundamentals, and investors are reminded to pay attention to the risks."
He paused and added,
"But the business update announcement can mention that the configuration logic of Henglong Capital in the New Energy industry chain is gradually being realized."
Liu Mingyu responded on the other end of the phone, and after hanging up the phone,
He thought over Zhao Chen's words several times, opened Hong Kong Stock Exchange's announcement writing system and started drafting.
He knew that once this announcement was issued,
The market's perception of Henglong will further move from "investment holding platform" to "core configuration target of New Energy industrial chain".
This is no ordinary business update announcement, this is the official debut of Henglong on the New Energy track.
Su Wantang took away the cold teacup in front of Zhao Chen, poured another cup of hot Pu'er and placed it next to his hand.
Chen Xi pushed a mark in the transaction data in front of him,
"Short Sellers seats, they spent more than half a year selling, and finally took two days to close the position."
Zhao Chen picked up the tea cup and took a sip.
"They closed the position they had built for more than half a year in two days, not because they wanted to do it quickly, but because they were forced to do so.
When there is a stampede, the person who runs first loses less, the person who runs later loses more, and the person who runs last pays for everyone."
He put down the tea cup and looked at the Hudson River outside the window.
The setting sun was sinking from the river, dyeing the entire river a deep golden color.
"Next, it's time for Nvidia."