> 1. Alameda Research experienced some losses and needed capital injection
Were the losses real or were they "diverted" to someone else? This, herein, lies the problem. We as outsiders cannot tell the difference.
Were the losses real or were they "diverted" to someone else? This, herein, lies the problem. We as outsiders cannot tell the difference.
Market paniced when alameda attempted to buy all remaining FTX from Binance, at $22. Probably because Alameda has loans that would be liquidated under that price.
A Bank run materializes, and the rest is history.
Afterall, "Fraud and Stupidity look an awful lot alike" [1] Playing the dope is pretty common con scheme.
[1] https://www.bankinfosecurity.com/fraud-stupidity-look-lot-al...