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After Archegos Capital, the family office of tiger-cub and convicted insider Bill Hwang was forced to sell more than $20 bln of stocks in a series of block trades on Friday, this morning – its looking likely to be a risk-off day. Block equity-trades stemming from the margin-calls on Archegos will have sent the market’s spidey senses a’tingle. Who is next?

From what I've been reading on Archegos, I can't find any published explanations why there was a $20 billion margin call, just that there was one. Did a bank fail? Was there a market sector collapse? Did a company go bankrupt? There is ZERO reporting on the cause of the margin call. A total blackout.

Could it be...

GAMESTOP?

From what little reading I did last night, it seems that Bill Hwang was banned in 2013 from trading for five years due to illegal short selling. Prior to being banned, before Hwang went out on his own he worked for a bank that held significant shares in GameStop, until the bank divested their shares after GameStop refused to implement requested changes to their business practices.

Are we going to find out that Archegos Capital Management was an early player in shorting GameStop because Hwang knew they were a poorly run company that rejected improvement suggestions? Are we going to find out that they were the first to get margin called 30 days later?

Are more hedge funds going to collapse now that the first domino is falling, or is this just a coincidence?

All I can say for sure is that the MSM is silent on the reasons for the margin call, and there are no other financial catastrophes that I can think of to warrant a $20 billion margin call on Archegos.

-PJ