[revel]

I think you're completely right that his fund isn't just performing straight up arb. In fact, I don't think it can generating most of its P&L from arb since (from what I remember at least), Galaxy Digital simply has too much capital to put it to use with an arb strategy alone.

My guess is that his fund got locked into a levered position on one of the exchanges like BitMex for trying to trade too much then couldn't get out for 24 hours. This kind of thing is more common than you might expect. There are also very few exchanges that allow margin trading, leverage or shorting, and all the ones that do have, uh, questionable compliance practices.