[christopherwxyz]

The most likely alternative, and the one that is least considered, is that short funds do not cover their position at all. Everyone loses.

[dgellow]

Yep. That would make it clear that the system is fucked.

[christopherwxyz]

Lehman Brothers and Bear Stearns disintegrating did not bring total collapse to the financial markets. Citadel would be just one institution in a small collection of others. Ordinary investors lose, one or more funds lose. Nothing changes.

[sumedh]

> Lehman Brothers and Bear Stearns disintegrating did not bring total collapse to the financial markets.

The market started to collapse when the Fed stepped in to bailout banks and AIG and others.