[cma]

They are only covered up to $5 billion for the entire brokerage industry, it may be like 2008 and they all get turned into FDIC insured banks over night if tons of margin accounts fail.

[ummonk]

Yeah we'd be looking at losses much bigger than that if the short-sellers go under due to a squeeze.

[jjeaff]

And a max of $100k per account.