[RegulatorCountry]

So if the hedge funds die - only the gamblers will be hurt. If banks are putting money there that is not even remotely wise... their money is little old lady money and should never ever ever be at risk.

Your understanding is somewhat idealized. The truth of the matter is that "funds of funds" have invested in hedge funds, state pensions have invested in hedge funds ... it's not contained within a certain class of investor. With a mass liquidation looming to cover redemptions, everyone who holds investments, in equities or commodities, is going to take a hit, and it could be a rather large one.

[q_an_a]

Thanks - I still think that the % those “funds” you mention would be small, say 5%. This may be a billion dollars for some of the funds, but not enough for a meltdown...I hope.