This really isn't a big deal, in respect to influencing the overall market.
The only ones who are really effected are the ones who owned REFCO stock.
If hedge funds are having problems the past couple months, its most likely that they were caught betting against the summer rally that happened.
Plus, investing too much money on the energy run up, while things have started cooling off the past couple weeks. Those heavily into energy got their clocks cleaned the past two weeks. Natural gas, oil, and energy related companies where majorly down.
Big october pullbacks are extremely common. Hedge funds got caught with their pants down.
"The only ones who are really effected are the ones who owned REFCO stock. "
As well as the impressive liability the underwriters are going to be facing, along with the company itself.
It is amazing arrogant stupidity that ceo let this co. go public with this in the closet waiting to be found. This could have been handled internally as a private co. and they could still have tried to go public in a couple of years. As it is, the existing equity holders are in peril of a wipeout. Is this stock every going to trade without a Q again?