I'm back in 1990

Chapter 531: Black Monday

2000年3月6日星期一，上午9:30分，纳斯达克準时开盘。

Last Friday, March 3, the Nasdaq index reached an all-time high of 4999 points at the close, which made countless retail investors ecstatic. Stock commentators jumped out and said that the Nasdaq would continue its upward momentum on Monday and would definitely break through the 5000-point mark and head towards 6000 points.

Some financiers and economists proudly declared on television that the alarmist article published in "are" was proof of the failure of those conspirators who were trying to short the Nasdaq.

So before the market opened today, countless people were waiting for this moment, they were waiting for this great moment.

When the clock struck 9:30, the Nasdaq opened on time. Less than five minutes after the opening, the Nasdaq index crossed 5000 points, and countless people cheered. Most people thought at this moment that since 5000 points had been broken, 6000 points was just around the corner.

Unfortunately, while imagination is beautiful, reality is cruel.

Shortly after the Nasdaq crossed 5000 points, the index suddenly reversed course and began to fall rapidly. By the morning close, the Nasdaq had fallen back below 5000 points, closing at 4912 points, 87 points lower than Friday's closing price of 4999.

In the afternoon, market sentiment quickly reversed, with investment institutions, led by major investment banks and funds, beginning to sell off these already overvalued tech stocks. Panic immediately gripped the market, and traders on the floor were constantly on the phone, scrambling to sell the stocks they were representing in an effort to recover some losses for their clients.

Zhang Yun had already completed all her position building before the Nasdaq reached 4972 points. Now, every point the Nasdaq drops, she can make tens of millions of dollars on paper. This figure is so large because she used some leverage and the original investment amounted to tens of billions of dollars.

Affected by the atmosphere of panic, the Nasdaq index fell to 4823 points by the close of trading that afternoon, 176 points lower than the 4999 points at the close of trading last Friday.

Zhang Yun made billions of dollars in profit on that day, and this was just the beginning.

That evening, Zhang Yun didn't let her guard down for a moment, using a satellite phone to assign tasks for the next day to traders in the world's major financial markets.

"Before the market opens tomorrow, we will increase our short positions in S&P 500 futures at the London Clearing House."

While issuing instructions, Zhang Yun retrieved real-time data from the Intercontinental Exchange from a large server.

She then opened the hidden quote interface for the Nasdaq 100 index options. After looking at it for a while, Zhang Yun instructed, "Use Bermuda-strike out-of-the-money put options to do GAA scalpg. When the VIX volatility index breaks through 45, the delta hedging will produce a chain reaction."

At this point, a trader reported: "The new margin account has been fully funded through Seychelles' SPV company, and the position sizes of all sub-accounts have been kept below the SEC's regulatory limits."

Zhang Yun replied briefly, "Understood!"

Six months ago, Zhang Yun established a large group of offshore companies by registering numerous offshore companies. Through this massive group of offshore companies, she held a large number of inverse ETFs, out-of-the-money put options, and forward contracts, and established dynamic hedging positions in five markets, including London, Hong Kong, Singapore, Frankfurt, and Zurich.

In the early stages, taking advantage of their control over a large number of Internet company shares, they secretly wrote a professional computer program. This program would use its own algorithm to break down large orders and then use the e-system to distribute the transactions, hiding their true intentions through dark pool trading, thereby circumventing the supervision of the SEC.

Furthermore, for the absolute security of each account, each trader only possesses a portion of the key. The account can only be activated upon receiving an instruction from Zhang Yun using a cryptographic technology. Each account is monitored in real time, and the system will automatically alert if any abnormality occurs. If the abnormality worsens, the system will automatically lock the account and force liquidation.

In this way, even if there are some losses, they will be negligible in the overall situation.

Furthermore, the final profits from this short-selling of the Nasdaq will be injected into the Bermuda Perpetual Trust through a Cayman Islands SPV, and then used for various investments, such as purchasing physical gold reserves and acquiring well-known commercial real estate around the world, thus constructing a completely anonymous dark web of wealth.

At 5:30 a.m., Huang Xiaochuan received a text message on his phone: "bb86".

However, Huang Xiaochuan did not check the message immediately. As the saying goes, one sleeps soundly in spring and is not aware of the dawn. It was springtime, and Huang Xiaochuan, who was deep in sleep, could not possibly have his sweet dreams disturbed by a text message.

After getting up, Huang Xiaochuan looked at his phone while washing up.

He only saw the text message then. The number that sent the message was hidden, but only Huang Xiaochuan understood what the two English letters and numbers meant.

A simple translation would be "The bubble burst, and short sellers made a profit of $86 billion on the first day." BB is an abbreviation for "bubble burst," and 86 represents the profit on the first day.

After quickly washing up, Huang Xiaochuan went downstairs for breakfast and then headed to school. The two little ones were still asleep; children need plenty of sleep during their growth spurt.

As he entered the campus, teachers and students who knew Huang Xiaochuan kept greeting him.

"Hello, Professor Huang!"

Good morning, Professor Huang!

Huang Xiaochuan responded to each of them with a smile.

Good morning, Teacher Chen!

Good morning, Professor Sun!

Hello, students!

Not long after I got to the office, Zhang Xiangguang called.

"Holy crap! Xiao Chuan, do you know what happened? The Nasdaq dropped by more than 100 points yesterday. My net worth has instantly shrunk by 10. Damn, that was more thrilling than riding a roller coaster."

"I know, but there should be a few more shocks later. So many investment institutions have their funds trapped in this situation. How can they withdraw their funds without a few shocks?" Huang Xiaochuan was very calm about this.

Zhang Xiangguang said with frustration, "It's a pity that my stocks haven't been released from lock-up yet. I've only been a paper billionaire for two months. If things really turn out as you predicted, I'm doomed."

Huang Xiaochuan comforted the man who, though not yet forty, had dressed himself up like an abbot of a temple.

"Alright! Stop being upset. Just you wait and see! There are plenty of people worse off than you. Although the stock price will be affected, it's not a big problem. But you should be careful not to get wiped out when the stock price hits rock bottom."

"I know that, but you promised me you'd lend me some money. Don't just stand by and do nothing, or kick me when I'm down."

To reassure Zhang Xiangguang, Huang Xiaochuan reiterated, "Don't worry! We're practically drinking buddies, after all. If anyone tries anything against you, I'll definitely help you out."

Zhang Xiangguang was relieved, but he still retorted to Huang Xiaochuan on the phone: "Who the hell is your fair-weather friend? To be precise, we're in this together now."

"Damn it, I won't stop you from being a grasshopper if you want, just don't drag me into it!" Huang Xiaochuan hung up the phone after joking.

After making the call, Huang Xiaochuan's students filed into his office.

Qiao Hongbo, Xu Tianlei, Yue Dongxue, and others are preparing for their thesis defense. If all goes well, the six of them will graduate with their master's degrees this June.

Today they are here to submit their completed papers to Huang Xiaochuan for review.

Cola Novels: turn the page and you're in another world.