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-[[File:Archegos Positions.png|250px|thumb|left|When [[variation margin]] attacks: ViacomCBS, Tencent, Baidu and Vipshop against the Dow (black)]][[Archegos]] took [[Synthetic equity swap|synthetic]] positions [[Margin loan|on margin]] in on four comparatively [[Illiquidity|illiquid]] stocks — ViacomCBS, Tencent Music Entertainment, Baidu Inc and Vipshop — in sizes big enough to push up their market prices. As their valuations increased, so did the [[net equity]] Archegos held with its [[prime broker]]s. Archegos used that equity to double down on the same investments, pushing the stock further up. The higher the stock went, the thinner the trading volume. [[Archegos]] became an ever-larger part of the market. On 22 March, Archegos’ [[synthetic]] ViacomCBS position had a gross market value of USD5.1bn — more than 10% of ViacomCBS’ market capitalisation. Since Archegos was trading synthetically, ViacomCBS may not have realised it was the only buyer in town.<ref>{{credit suisse archegos report}}</ref> In any case, in a brutal cruel irony, ViacomCBS concluded that market sentiment was so strong that it should raise capital raising, and it duly announced a USD3bn share offering. There turned out to be only one buyer even interested in the offering — Archegos — and it was tapped out of fresh equity to invest. When it declined to participate, the capital raising failed and hell broke loose.
+In the months leading up to March 2021, [[Archegos|Archegos Capital Management]] took [[Synthetic equity swap|synthetic]] positions [[Margin loan|on margin]] on a handful of comparatively [[Illiquidity|illiquid]] stocks — ViacomCBS, Tencent Music, Baidu and Vipshop — in sizes that, across multiple [[prime broker]]s, were big enough to move the market sharply up. As the stocks appreciated, so did Archegos’ profit, and thus the [[net equity]] it held with its [[prime broker]]s. [[Archegos]] used that [[net equity]] to double down, buying the same stocks, pushing them up yet ''further''. The higher they went, the thinner their trading volume, and the more of the market [[Archegos]] represented.
+Now, hindsight is a wonderful thing, but really there was only one way this was ever going to turn out.
+On 22 March, [[Archegos]]’ position in Viacom had a gross [[market value]] of US$5.1bn.<ref>{{credit suisse archegos report}}</ref> In a cruel irony, Viacom interpreted this to mean market sentiment was so strong that it should take the opportunity to raise capital.<ref>As it was a [[Synthetic equity swap|synthetic]] position, Viacom may not have realised that Archegos was the only buyer in town: if it had, it may never have tried to raise capital in the first place.</ref> Alas, no one was buying. Not even Archegos, since it was tapped out of equity with its [[prime broker]]s.
+Viacom’s capital raising therefore failed, and [[Archegos|all hell broke loose]].