1) Quick story. In 2000, about 10 funds cornered the internet stocks (Janus 20, Munder, Firsthand, Bill Miller, Van Wagoner, etc.) on the way up, they marked-up each other’s books and it led to inflows, so they could buy more and corner the market in each unprofitable name…

2) Then insiders started dumping shares, VCs started selling, companies issued stock to fund unprofitable growth. These funds lost control of the float because they couldn’t match inflows with increased share floats…

3) Then it unraveled. Slowly, then a tsunami. As fund performance turned negative, redemptions picked up. Suddenly, those cornering the market were themselves selling. They tried to prop up individual illiquid names, but someone always broke ranks and sold b/c of redemptions…

4) By Q3/2020, redemptions were running wild. Waves of selling every day. Companies trying to price down-rounds to get working capital, yet finding no bids. It was everyone selling. Then the margin calls kicked in…

5) $ARKK and all the Tiger-40 clones are going to spray the street for all of 2022. When it goes in reverse, with financial leverage, it will reach a tipping point and melt. We’re almost there…