Recaps

Zhao Chen used proceeds from selling Bitcoin to redeem his and Su Wantang’s pledged Henglong shares, while arranging three-year shareholding commitments from major shareholders and executives. The announcements were released at nine, shocking the capital market and threatening short sellers’ ability to borrow and return shares.

• Zhao Chen asked Chen Xi to confirm that selling ten thousand Bitcoins had raised about 740 million Hong Kong dollars.
• Zhao Chen instructed the team to redeem his and Su Wantang’s pledged shares and arrange three-year commitments against selling or pledging shares.
• Zhao Chen extended the three-year lock-up commitments to Shen Zhiyi and Henglong’s executives, including Chen Xi and Zhang Qingxue.
• Liu Mingyu prepared three announcements stating that Zhao Chen and Su Wantang would redeem 260 million pledged shares and that shareholders and executives would lock up their holdings.
• Liu Mingyu released the announcements at nine, prompting a major reaction in the capital market.

Zhao Chen’s announcements sharply restricted Henglong’s circulating shares and put Lu Shen’s 80-million-share short position under pressure. As the stock climbed toward Lu Shen’s break-even price, Lu Shen ordered Zhou Huai to investigate Zhao Chen’s redemption funds and cast doubt on their legality.

• Investors on Snowball realized Zhao Chen had lifted the pledge on 230 million shares and agreed that the reduced supply would make it difficult for short sellers to return borrowed shares.
• Shen Jue called Zhao Chen, who explained that the pledge procedures would take time and that the announcements were meant to signal a shrinking supply while he arranged more funds.
• Shen Jue decided not to lift her own pledge, and Zhao Chen said he had another move planned but was not ready to discuss it.
• After the market opened, Henglong’s price rose to 17.8, and Zhao Chen warned Su Wantang and Chen Xi not to underestimate Lu Shen’s ability to fight back.
• Lu Shen rejected Zhou Huai’s suggestion to close the short position, arguing that covering would push the price higher and deepen his losses.
• Lu Shen told Zhou Huai to investigate whether Zhao Chen could legally fund the redemptions and to remind the market of doubts about his money.

Zhou Huai and Lu Shen used media attacks to cast doubt on Zhao Chen’s ability to release Henglong’s share pledge, sending the stock price downward. Zhao Chen stayed calm and continued negotiations, while Shen Jue instructed the fund manager to buy Henglong shares below 17 so Lu Shen could not close his short position.

• Zhou Huai tipped Editor-in-Chief Li to investigate Zhao Chen’s source of funds, and Lu Shen approved the media campaign.
• Media outlets published sensational reports questioning Zhao Chen’s wealth, and online doubts spread about whether he could redeem the pledged shares.
• Henglong’s stock rose to 19 at the opening before falling to 17.5, and Chen Xi urged Zhao Chen to respond to the allegations.
• Zhao Chen told Chen Xi to keep negotiating with the pledgees and said the doubts would deepen Lu Shen’s trouble once Zhao Chen liquidated his Bitcoin in December.
• Shen Jue told the bald fund manager to buy Henglong shares below 17 so Lu Shen could not buy shares to close his position.

Henglong’s share price repeatedly held above 17 Hong Kong Dollars as buying pressure absorbed Lu Shen’s attacks, while Zhao Chen waited and Lu Shen remained determined to keep shorting. The chapter ended with Lu Shen betting that Zhao Chen would fail to raise the money needed to release the pledge.

• Buy orders repeatedly stopped Henglong from falling below 17, and Snowball users speculated that large funds were building positions.
• Xiao Lin covered his 5,000-share short at 16.92 and decided he would not short again.
• Henglong closed at 17.25 Hong Kong Dollars, and Chen Xi told Zhao Chen that Lu Shen’s short position had exceeded 80 million shares.
• Zhao Chen chose to wait, expecting more investors to recognize 17 as a firm floor.
• Lu Shen learned that many small short sellers had covered and insisted that he would attack again when an opportunity arose.
• Lu Shen told Zhou Huai that he did not believe Zhao Chen could raise the money to release the pledge.

Lu Shen’s attempts to drive down Henglong’s stock were absorbed by buyers, leaving him trapped with a growing short position he could not cover. As Shen Jue’s group waited for him to buckle, Henglong issued an announcement that set a market reversal in motion.

• Lu Shen and Zhou Huai sold millions of Henglong shares, but buyers absorbed the orders and Lu Shen’s net short position rose to 89 million shares.
• Investors on Snowball discussed the shorts’ paper profits and the difficulty of closing their positions.
• Shen Jue told three fund managers to keep accumulating shares near 17 and wait for Lu Shen to run out of time and money.
• Henglong’s price stayed near 17 as sell orders dwindled, while Lu Shen stopped placing large orders for fear of pushing the price up.
• Henglong issued an announcement, lighting the fuse for a market reversal.

Henglong announced that Zhao Chen and Su Wantang had released 60 million pledged shares by repaying 500 million Hong Kong dollars, convincing the market Zhao Chen could eventually release the remaining 160 million shares. Lu Shen tried to buy Henglong shares to cover his short position, but no one would sell at his offered premium, so he went to negotiate in person.

• Henglong announced that Zhao Chen and Su Wantang had released 60 million pledged shares, while Zhao Chen's remaining 160 million shares stayed pledged.
• Investors on Snowball celebrated Zhao Chen's repayment and anticipated another short squeeze, while Lu Shen realized he had lost and ordered Zhou Huai to buy Henglong shares.
• Lu Shen told Zhou Huai to offer a 30% premium over the closing price for block transfers.
• Zhou Huai called twenty potential sellers, including Zhao Zong and Mr. Sun, but none accepted his offer because they expected the stock to rise further.
• Zhou Huai reported that no one was willing to sell, and Lu Shen left to negotiate with the shareholders himself.

Lu Shen tried to buy Henglong shares from several investors to cover his short position, offering steep premiums and promising access to Blackstone projects. After securing 19 million shares, he still had more than 70 million left to buy and decided to continue despite the risks of using company resources.

• Lu Shen offered President Zhang a 30% premium for five million Henglong shares, but President Zhang refused because the deal risked his reputation with clients.
• Lu Shen offered President Chen a 40% premium for three million shares, but President Chen said the transaction required approval from higher-ups and declined.
• Lu Shen secured three million shares from President Li at a 50% premium after promising priority consideration for a Blackstone project.
• Lu Shen secured four million shares from Wang Zong at a 60% premium after offering priority on two Blackstone projects.
• Zhou Huai reported that Lu Shen had closed seven deals for 19 million shares at an average price of 24.5, totaling 465 million, but more than 70 million shares remained.
• Lu Shen told Zhou Huai to continue buying the next day, despite recognizing that his use of Blackstone and Jiahe resources could become leverage against him.

Shen Jue planned to redeem all her pledged Henglong shares and announced that she had bought ten million more, tightening the squeeze on Lu Shen’s short position. Zhao Chen concluded that Lu Shen had to cover quickly before the pledged shares were released, but whether the longs would let him remained uncertain.

• Finance Circle traders debated Henglong’s value and expected Monday’s market to be volatile after Lu Shen bought another ten million shares at a 70% premium.
• Shen Jue told her managers she would redeem all her pledged shares and disclosed that she had acquired ten million shares off-market, bringing her stake to 7.14%.
• Shen Jue informed Zhao Chen, who agreed to have Liu Mingyu prepare and release an announcement the next morning.
• Liu Mingyu drafted the announcement, and Zhao Chen reviewed it, confirming Shen Jue’s increased stake and plans to redeem her pledged shares within five business days.
• Chen Xi calculated that Zhao Chen’s side held nearly 86% of Henglong’s shares, leaving Lu Shen with little prospect of covering his short position once the pledged shares were released.
• Zhao Chen said Lu Shen had to cover before the shares became unavailable, then questioned whether the longs would give him that chance.

Henglong’s shareholders strengthened their position, and the stock surged, leaving Lu Shen’s short position deeply underwater. After Blackstone headquarters ordered him to stop and await an investigation, Lu Shen was left facing the collapse of his trade and an uncertain future.

• Zhou Huai told Lu Shen that Shen Jue had bought 10 million more Henglong shares and planned to redeem all her pledged shares, bringing allied holdings to 481 million shares, or 86%.
• Henglong opened at 25.88 yuan on December 4 and climbed to 30 yuan as buyers overwhelmed sell orders, while Lu Shen’s 60 million-share short position lost heavily.
• Zhou Huai asked Lu Shen whether he should close the short position, but Lu Shen said closing would push the price higher and increase his losses.
• Zhao Chen told Chen Xi that the squeeze had been driven by market buying and positive news, and that a stronger squeeze would require his cooperation.
• Lu Shen ignored calls from his broker and others, then answered a call from Blackstone headquarters and was ordered to stop trading and await an investigation.

Blackstone uncovered Lu Shen’s forged guarantees, unauthorized investments, and improper promises, then reported him to the police and publicly distanced itself from him. The scandal broke worldwide, confirming speculation that Lu Shen held a massive short position in Henglong.

• An anonymous email sent Blackstone’s Compliance Department evidence of Lu Shen’s misconduct, including his investment in Lin Wanqing’s companies and his use of Blackstone guarantees while shorting Henglong.
• Blackstone executives held an emergency meeting, and Chen Ming admitted he had approved the investment and failed to prevent Lu Shen’s actions.
• Chen Ming proposed reporting Lu Shen to the police, and Blackstone suspended Chen Ming pending an internal investigation while forming a task force to review Lu Shen’s projects.
• Blackstone prepared a case report accusing Lu Shen of forgery, unauthorized investments and commitments, and abuse of authority, then delivered the materials to the New York Police.
• Blackstone published a statement saying Lu Shen had been suspended and that his actions were unrelated to the company.
• Financial media spread the news, and speculation that Lu Shen held a massive short position in Henglong was confirmed.

After Lu Shen's arrest, the brokerages tried to settle his short positions before Henglong's market opened. Shen Jue agreed to close at 40 Hong Kong dollars per share, but only after naming a condition that stunned Morgan Stanley's representative.

• Chen Xi told Zhao Chen that Morgan Stanley, Goldman Sachs, and China International Capital Corporation wanted to close Lu Shen's short positions at 30 Hong Kong dollars or suspend trading.
• Zhao Chen refused to intervene or halt trading and directed the brokerages to negotiate with Shen Jue.
• Shen Jue rejected the offer of 30 Hong Kong dollars and initially demanded 50, warning that Henglong's shares could surge after the market opened.
• The brokerages returned with a 40-dollar offer, and Shen Jue accepted it on the condition that she then revealed.

Shen Jue negotiated with the investment banks to sell 35 million Henglong shares at 40 per share, in exchange for forcing Lin Wanqing out of Jiahe and pressuring her company. Zhao Chen approved the banks’ month-long confidentiality agreement, while the banks planned to suppress Henglong’s share price; Lin Wanqing was left facing a worsening liquidity crisis.

• Shen Jue demanded that the investment banks use Jiahe’s voting rights to remove Lin Wanqing from Henglong Property, use Blackstone’s fake guarantee letters to drain Lin Wanqing’s company of liquidity, and force the sale of her interests in three projects at Haoyu’s earlier valuation.
• Shen Jue offered 35 million shares she had recently bought for 40 per share, while keeping her own 40 million shares off the market.
• The investment banks required Shen Jue, Zhao Chen, and the other relevant parties to keep the deal confidential and make no public statements for one month.
• Zhao Chen agreed to the confidentiality terms, reasoning that buying pressure and Henglong’s fundamentals would make it difficult for the banks to push the share price below 20.
• The investment banks agreed to buy Shen Jue’s 35 million shares at 40 and planned to use the quiet month to lower Henglong’s price and cover their remaining short positions.
• Lin Wanqing’s liquidity problems worsened after the deal, and Zhao Chen resolved to eliminate her completely.

Zhao Chen’s team stripped Lin Wanqing’s remaining ties from Henglong and confirmed her company was near collapse. Lin Wanqing sought help from Zhao Jianguo in prison, but he rejected her and cut off their relationship.

• Chen Wei reported that Zhao Chen had acquired equity in three projects, while Zhang Qingxue said she had removed Lin Wanqing’s connections from Henglong’s liabilities.
• Chen Wei told Zhao Chen that Blackstone had drained Lin Wanqing’s company of liquidity and that creditors were demanding repayment.
• Lin Wanqing visited Zhao Jianguo in prison and asked him for one hundred million to save her company.
• Zhao Jianguo accused Lin Wanqing of betraying him with Lu Shen and refused to give her Zhao Chen’s money.
• Zhao Jianguo told Lin Wanqing he doubted whether her three children were his, then ended the visit and told her not to return.

Lin Wanqing's company entered bankruptcy liquidation after Zhao Chen's victory over her, leaving him troubled by the consequences of their conflict. Shen Zhiyi comforted him, and Zhao Chen returned to Henglong to handle an important report and prepare for the harvest season.

• Lin Wanqing learned that her company had been placed into bankruptcy liquidation and that its shares in three projects had transferred to Haoyu; she left the prison after arguing with Zhao Jianguo, who gave her no money.
• Chen Xi told Zhao Chen that Lin Wanqing's company was being liquidated and Zhao Jianguo had refused to help her, while Zhao Chen said she would have to walk her own road.
• Su Wantang encouraged Zhao Chen to walk around campus, where he unexpectedly met Shen Zhiyi and her friends.
• Zhao Chen told Shen Zhiyi that he felt unable to celebrate Lin Wanqing's defeat, and Shen Zhiyi reassured him that Lin Wanqing and the others bore responsibility for their own choices.
• Shen Zhiyi kissed Zhao Chen goodbye, and Liu Haitao told him that Chen Xi had an important report; Zhao Chen returned to Henglong and asked Su Wantang to prepare a late-night snack.

Zhao Chen watched Bitcoin approach his first sell point and explained the short squeeze driving its rise to Chen Xi and Su Wantang. He set a staged plan to sell Henglong’s holdings and arranged for Shen Zhiyi and her roommates to sell their smaller stake at 17,000 US Dollars.

• Zhao Chen returned to Henglong and confirmed with Chen Xi that 490,000 coins were ready to sell across eight accounts as Bitcoin neared 15,000 US Dollars.
• Su Wantang arrived with a late-night meal, and Zhao Chen explained how short sellers covering their positions could drive Bitcoin’s price higher.
• Zhao Chen told Chen Xi to sell the first batch at 15,000 US Dollars, then 50,000 coins for every additional 500-dollar rise, clearing the rest above 17,000.
• Zhao Chen asked Chen Xi to arrange a gradual sale at 17,000 US Dollars for the fewer than 200 coins held by Shen Zhiyi and her roommates.

Zhao Chen tested the Bitcoin market by selling forty thousand coins, and the price held steady as institutions absorbed them. After hours of sideways trading, Bitcoin broke through 15,000 as Zhao Chen rushed back to the screen.

• Zhao Chen ordered Chen Xi to sell forty thousand coins in batches to test whether Bitcoin was at its peak.
• Chen Xi saw the orders filled without pushing the price down and concluded that powerful buyers were supporting the market.
• Zhao Chen declared the trading range a final shakeout and told Su Wantang and Chen Xi to rest in shifts while he watched.
• At four in the morning, Su Wantang and Chen Xi took over as Bitcoin remained near 14,800, and Zhao Chen went to sleep.
• A little after eight, Chen Xi saw Bitcoin rise through 15,000, and Su Wantang woke Zhao Chen, who rushed to the computer.

Zhao Chen and his team sold 100,000 Bitcoin for 1.52 billion US dollars while waiting for the market’s next surge. As Bitcoin consolidated through the afternoon, Zhao Chen prepared to sell the remaining 350,000 coins during the predicted nighttime frenzy.

• Zhao Chen instructed Chen Xi to sell the first 50,000 coins gradually, recovering 756 million US dollars at an average price of 15,120 dollars.
• Zhao Chen and Chen Xi sold a second batch of 50,000 coins, bringing the total recovered to 1.52 billion US dollars.
• Zhang Qingxue took over monitoring the market while Zhao Chen slept, and the price fluctuated around 15,200 to 15,300 dollars.
• After waking at noon, Zhao Chen said Bitcoin would likely keep consolidating until nighttime, when he expected it to reach at least 17,000 dollars.
• Zhao Chen recalled Bitcoin’s rapid climb toward 19,000 dollars and its subsequent crash, and planned to sell the remaining 350,000 coins during the frenzy.
• As evening approached, Zhao Chen and Su Wantang wondered whether the final night of the bull run had arrived.

Zhao Chen began selling his 350,000 Bitcoins as the price surged, recovering billions of dollars while slowing the rally. With 100,000 coins still unsold and Bitcoin stalled below $17,800, he ordered the final holdings cleared once the price rose above that level.

• Zhao Chen assigned Chen Xi and Zhang Qingxue to monitor accounts as the team prepared for Bitcoin’s breakout.
• When Bitcoin passed $16,000, Zhao Chen sold 50,000 coins at an average of $16,080, then sold another 50,000 at an average of $16,540 as the price climbed past $16,500.
• As Bitcoin broke $17,000, Zhao Chen sold a third batch of 50,000 coins, and the price continued rising despite his orders.
• Zhao Chen sold a fourth batch of 50,000 coins as buying pressure weakened and the price met resistance above $17,000.
• Zhao Chen sold a fifth batch of 50,000 coins above $17,500, helping hold Bitcoin between $17,600 and $17,800.
• Zhao Chen ordered the remaining 100,000 coins sold in two batches once Bitcoin rose above $17,800.

Zhao Chen sold his remaining Bitcoin holdings, recovering more than US$8.2 billion, and his massive liquidation helped trigger a historic crash. He left the office with Su Wantang and Chen Xi, while the story ended with the question of whether Zhang Qingxue's firewall could hide his identity.

• Zhao Chen sold his final 100,000 Bitcoin in two batches, completing the sale of 350,000 coins and recovering a total of US$8.233 billion with his previous holdings.
• Chen Xi confirmed that Shen Zhiyi's Bitcoin had also been sold, while Zhang Qingxue noticed Bitcoin's price beginning to plunge.
• Bitcoin crashed from around US$18,000 to below US$11,000, and Zhao Chen recognized that his liquidation had intensified the market panic.
• Zhao Chen told Chen Xi they would rest before deciding what to do with their funds, then left the office with Su Wantang and Chen Xi.
• Zhao Chen concluded that Bitcoin's future no longer concerned them, as the chapter ended with his identity's protection by Zhang Qingxue's firewall still to be tested.

Bitcoin’s violent crash made headlines worldwide as traders speculated about the mysterious whale who sold above $17,000. Zhao Chen’s friends learned that he had sold their Bitcoin at an average of $17,000, while he slept through a flood of calls in Henglong Building.

• Global media reported that Bitcoin surged to $18,000 before plunging below $11,000, wiping out billions and liquidating leveraged traders.
• Bitcoin forum users debated who sold 350,000 coins and wondered whether Zhao Chen had escaped the crash.
• Members of the Henglong Harem Wealth Club worried that Zhao Chen and Wantang were unreachable and wondered whether their Bitcoin had been sold.
• Chen Xi told Shen Zhiyi that Zhao Chen had closed out their Bitcoin according to plan, at an average price of $17,000.
• Shen Zhiyi told the group they had made a large profit, and the members celebrated while Zhao Chen slept through more than a hundred missed calls.

Wall Street and blockchain analysts tried to identify the anonymous holder who sold 350,000 Bitcoin and drove the price below $18,000, but the seller’s use of fresh addresses and mixing tools left them without a clear trail. The chapter ended with analytics investigators continuing the pursuit in hopes the seller would eventually use an exchange.

• Goldman Sachs, JPMorgan Chase, Renaissance Technologies, and Ken Griffin reacted to the Bitcoin crash and the losses caused by the massive sell-off.
• Steven Mnuchin, Michael Novogratz, Brian Armstrong, Jeffrey Sprecher, and other financial figures met to investigate who had sold 350,000 Bitcoin.
• An analyst reported that the coins came from eight coordinated accounts that had accumulated more than 500,000 Bitcoin at an average price of about $850, leading the group to suspect an Eastern superpower.
• A blockchain analytics team traced the seller’s funds through fresh addresses and cross-chain transfers before losing the trail at a CoinJoin mixing protocol.
• The analytics team’s manager ordered the engineers to keep tracking the seller until the coins reached an exchange where investigators could obtain KYC data.

Zhao Chen learned that Wall Street had traced his Bitcoin sell-off only as far as Hong Kong and chose a risky Swiss private-banking route to make the more than eight billion dollars available within a month. Wall Street and the media continued speculating about the mysterious whale, while Zhao Chen accepted the possibility that investigators might eventually identify him.

• Zhang Qingxue told Zhao Chen that Wall Street firms had followed the Bitcoin funds through more than twenty hops but lost the trail in CoinJoin transactions, though they suspected the activity originated in Hong Kong.
• Zhang Qingxue offered three ways to move the more than eight billion dollars, and Zhao Chen rejected the slower options in favor of cashing out through Swiss private banks within a month.
• Zhao Chen told Zhang Qingxue to find a bank willing to handle the funds and said he would accept the risk of leaving a trace.
• Zhang Qingxue reported that Wall Street was guessing the sell-off had been carried out by North Korea, Russian oligarchs, or Satoshi Nakamoto.
• News and online speculation spread, as Wall Street's elites focused on finding the mysterious trader and Zhao Chen considered whether he feared their attention.

Zhao Chen planned to invest his Bitcoin profits in Nvidia, Tesla, and Apple, and asked Chen Xi, Su Wantang, and Zhang Qingxue to assess the stocks. Their discussion reinforced his confidence in the plan, while he privately recalled how much SoftBank would have gained by holding Nvidia.

• After Zhang Qingxue left, Zhao Chen reviewed his wealth and decided to invest his upcoming funds in US stocks, focusing on Nvidia, Tesla, and Apple.
• Zhao Chen called Chen Xi, Su Wantang, and Zhang Qingxue to an early-morning meeting about his next investments.
• Chen Xi cited Nvidia’s AI-chip position and SoftBank’s investment, while Zhang Qingxue described Masayoshi Son’s investment record and Nvidia’s valuation.
• Chen Xi and Zhang Qingxue discussed Tencent’s Tesla stake, Tesla’s production prospects and short positions, and Apple’s stability and share buybacks.
• Zhao Chen asked how much SoftBank might earn from Nvidia; Chen Xi estimated potential returns, while Zhao Chen remembered that Masayoshi Son later regretted selling too early.

Zhao Chen planned an $8 billion investment in Nvidia, Tesla, and Apple, but Chen Xi warned that a cryptocurrency crash could hurt Nvidia. He shifted most of the money into Tesla, leaving the team to arrange the purchases and prepare for future opportunities.

• Zhao Chen initially planned to invest $4 billion in Nvidia, $2 billion in Tesla, and $2 billion in Apple over six months.
• Chen Xi and Zhang Qingxue warned that a cryptocurrency downturn could flood the market with used graphics cards and damage Nvidia’s sales and stock price.
• Zhao Chen revised the plan to invest $500 million in Nvidia, $6 billion in Tesla, and $800 million in Apple, while reserving $900 million for future opportunities.
• Zhao Chen told Zhang Qingxue to monitor funding channels, while Chen Xi prepared new Tesla research and Zhang Qingxue contacted the overseas lawyer.
• Zhao Chen told Su Wantang that he expected Tesla to be worth $1,200 per share in five years, and she trusted his judgment.

Zhao Chen rewarded Chen Xi and Zhang Qingxue with twenty million RMB each and gave them a week off for their work on Bitcoin. As he and Su Wantang discussed her own reward, Shen Jue called Zhao Chen with an unusually personal greeting, leaving them wondering why her manner had changed.

• Zhao Chen told Su Wantang he planned to give Chen Xi and Zhang Qingxue twenty million RMB each and grant them a week off.
• Zhao Chen informed Chen Xi of her personal bonus and vacation, and she was moved by his generosity.
• Zhao Chen gave Zhang Qingxue the same bonus and time off, and she accepted after confirming the money came from him personally.
• Zhao Chen told Su Wantang that she would receive a reward too, but kept its details secret.
• Shen Jue called Zhao Chen and addressed him by name instead of as Chairman Zhao, surprising both Zhao Chen and Su Wantang.