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Reviewing Justin Sun's trading methods, how to recover hundreds of millions of acquisition funds after taking over Huobi?

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10,000-digit trading review: This time last year, I played with Justin Sun for a whole month before FTX exploded.

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Source: Gun Seventeen

Last year at this time, I played a game with Sun Yuchen for a whole month before the FTX scandal. On October 8, 2022, Huobi announced that Li Lin had resigned and Baoyu Capital had acquired Huobi. A few days later, Sun Yuchen revealed that he was actually the buyer, confirming everyone's suspicions about the buyer.

Note: The purpose of this thread is only to review logical reasoning and trading operations, and there is no personal attack or other negative tendencies towards Mr. Sun.

At that moment, I had 3 pieces of information in my hands:

2. Many executives and middle-level managers at Huobi hold a large amount of HT (clue 1).

3. "Secure the bag" is one of Sun's important life philosophies. Based on the currency exchange dispute between Sun and the Martians at that time, another piece of information can be inferred.

4. Sun attaches great importance to short-term benefits and quick in and out (clue 2).

Comprehensive intelligence analysis can be 99% certain that he will try his best to recover the hundreds of millions of dollars in real gold and silver he spent on the acquisition when he takes over Huobi. To recover the funds, Sun has only two options.

1. Profit from HT in the secondary market.

2. Use the deposited funds of Huobi users to trade cryptocurrencies.

Almost every company in the industry has insiders providing us with insider information. One night, we received new insider news related to HT: Sun is requesting high-level private keys for various chains on the Heco network from the technical personnel involved in this transaction.

So, it's clear that from here on out, his next move will be to profit from the HT chips controlled by Huobi.

100% can establish the main theme of this cycle - decline.

Whether from Huobi employees or from Li Lin, Sun can easily obtain information about (clue 1).

To profit from price manipulation of HT, the upward momentum must be limited to avoid unnecessary cash consumption from historical chips being sold off during price increases. Therefore, profits will be taken when the price reaches a favorable level.

During a downtrend, it is common knowledge for novice traders to use intermittent buying or violent volume surges to liquidate short positions before continuing the downward trend.

I started thinking about how to take advantage of this trading opportunity.

It is not difficult to imagine that the process of shorting HT must be quite dangerous and requires the following conditions:

-The dealer has rich experience in manipulation and must wait until the last wave of pull-up before shorting.

- The leverage should not be too high and there should be the ability to withstand rapid 15%~30% violent surges.

- Due to the name "Sun Cut", there will definitely be a lot of people shorting HT. The funding rate cannot fluctuate too much, that is, the trading cost must be controllable.

On October 9th, Sun is preparing to open Space the next day, with the title "One Month Anniversary of Employment, Sun's Work Report". A new market-making cycle has begun.

October 10th, Huobi held its first online all-staff meeting after the acquisition, and Sun announced that the company will expand its global strategy plan for Huobi and empower HT. Within 24 hours after Sun's public call for a rally, HT surged nearly 30%.

October 14th, on the 6th day of Sun's employment at Huobi, Sun Yuchen accepted an interview with Bloomberg at 5:30 in the morning, stating that he will use HT as a long-term strategic reserve and has already increased holdings of millions of HT, and will continue to increase holdings. HT has surged again.

This is when Sun Ming clearly stated: "I am the dealer with an open hand. If you have the courage, come and challenge me."

The first wave is over. $4 pulled up to $7, and a large number of retail investors who shorted were liquidated.

Ordinary leeks are still too naive for cunning dealers like Sun.

Here we still need to talk at length about when is the right time to short. Trading novices often blindly short when they feel the price has risen too high. In addition, shorting does not necessarily have to be done through opening a contract.

October 17th, Sun said, "Today is my ninth day at Huobi. ... Some people are afraid that Brother Sun will cut me off. Let me tell you, don't worry, he won't cut me off..." A bunch of retail investors saw HT skyrocketing and rushed in to short the futures, only to be blown up again.