248: A 20% plunge in 3 days triggered a chain reaction, with the A-shares market hitting its daily limit down. Goldman Sachs surrendered!

In China.

There are quite a few Institutions that primarily deal in US Stock Market, but most fall into two categories.

One category consists of Brokerage Firms, which mainly handle US stock IPO underwriting and M&A advisory services, occasionally engaging in institutional trading.

The second category consists of Private Equity Fund asset management Institutions, which specialize in investing in the US stock secondary market!!

The massive drop in Goldman Sachs' stock price this time,

was a carnival for these Private Equity Fund asset management Institutions!!

Jinglin Asset, Hillhouse Capital, Dan Shui Quan, and others all joined this frenzy.

Not all of them blindly went long or blindly went short.

Playing like that in US Stock Market makes it easy to suffer margin calls.

They basically played hedging strategies, but leaned heavily toward the direction they favored.

If they won, they made a massive profit; if they lost, they wouldn't lose much money.

However, some top-tier Hot Money players blindly followed suit and shorted the stock!!

Alliance Leader Zhang, Stock Trading for a Living, Old Brother Zhao, Foshan Road, and even Xu Xiang.

These people keenly realized that Goldman Sachs' US Stock Market were definitely ripe for action over the past two days.

If nothing else, the volatility would certainly be huge, making leveraged long or short positions an excellent choice!

Day one.

Only these keenly perceptive top-tier bigwigs joined the fight.

Whether going long or short, they had all chosen their direction.

Alliance Leader Zhang even invested hundreds of millions to short Goldman Sachs: "I hope my choice this time is correct. Brother Lin, can you control this wave?"

They all understood that this time it was Brother Lin VS Goldman Sachs.

But Goldman Sachs has regulators and complex relationships backing it; there will always be people who want Goldman Sachs to continue existing.

Furthermore, there are some extremists who look down on China.

They believe Goldman Sachs can fall into the hands of other Wall Street peers, but absolutely not into the hands of Chinese people.

These are all factors that need to be considered!

Ultimately, Goldman Sachs closed with a -4% change for the day.

This magnitude was actually acceptable to both the bulls and the bears.

Wang Lin successfully executed a large 3-point T-trade.

Crucially, he managed to push the stock price lower and increase the panic.

Tomorrow, they would launch another fierce attack!

Strike while the iron is hot, then momentum fades, and finally, strength is exhausted!

Therefore, Goldman Sachs must be subdued on the third day!!

...China Time.

Early the next morning.

Early-rising office workers and Stock Investors saw overwhelming news about Goldman Sachs.

"Holy crap, what happened to Goldman Sachs? It collapsed so much in one day?"

"Yeah, looking at the daily K-line, one day wiped out several months of gains!!"

"That's brutal, which Institution did they offend?"

"Uh... do you guys remember Brother Lin publicly challenging Goldman Sachs on the Social Media Platform? I bet it was him!"

"That awesome?! Brother Lin, he can arm wrestle with Goldman Sachs? That's a top-tier investment bank on Wall Street!!"

"I don't know, but that's what my friend said, and he works at CITIC!!"

The news had already begun to circulate among Retail Investors.

Even the A-share market today was interesting; every stock entangled with Goldman Sachs hit a limit down straight away!

However, these stocks connected to Goldman Sachs were almost all heavily invested in by the firm.

For example, OmniVision Group, H&T, Longli Technology, pacific, Hongye Futures, SDIC Securities, Tianqian Equipment, Guanzhuan Technology... covering fields like semiconductors, finance, military industry sector, and consumer electronics.

Stock Investors who bought these stocks were completely stunned by this sudden blow today.

"Damn it!! What's going on?"

"limit down! I bought the big finance sector, and other stocks are fine, so why did my pacific collapse?"

"Ahem, didn't you see Hongye Futures and SDIC Securities are keeping you company? I heard it's because of the Goldman Sachs situation!!"

"What happened to Goldman Sachs?"

"Look at its stock price, it dropped by a minimum of 6 points yesterday. This is Goldman Sachs we're talking about, huge news!!"

"I bought Qianhe Condiment, damn it, I'm in the consumer sector, why is mine collapsing too?"

"Is there a possibility that Qianhe Condiment is also a stock heavily bought by Goldman Sachs?"

At this point, some people finally summarized the pattern from these limit down stocks.

Nearly every stock that hit limit down was a stock heavily held by Goldman Sachs Group.

They might truly be collapsing because of the crash of Goldman Sachs in US Stock Market.

Some people were dumbfounded.

They ran to Brother Lin's Social Media Platform comments section and asked: "Brother, did you really crash Goldman Sachs' stock price?"

He originally just wanted to vent, but didn't dare say anything harsh.

Who knew that around 2 PM, Wang Lin actually replied to that Social Media Platform comment: "It hasn't crashed enough yet!"

That single sentence immediately doubled the volume of limit down sell orders for the stocks mentioned above.

Hot sector stocks, like the big finance sector and military industry sector stocks, had originally seen funds attempting to break the limit down.

But the moment that sentence appeared, they were instantly sealed again.

pacific main force: "...What the heck!!!"

SDIC Securities main force: "...Damn it!!"

Guanzhuan Technology main force: "...Crap, collateral damage!!"

Qianhe Condiment main force: "...When gods fight, mortals suffer!!"

It was no wonder the main forces behind these stocks were cursing.

They had originally wanted to take advantage of this major bull market to aggressively push the price up and then cash out.

Now, the goods hadn't been sold, and they themselves were buried.

And the reason was a fight between 'gods' in US Stock Market?!

They were heartbroken.

As for Wang Lin.

He actually didn't need to say that.

But he did.

Leng Nuannuan was a little confused about the meaning of saying it.

Wang Lin smiled mysteriously and said, "The meaning is to amplify the panic surrounding Goldman Sachs. The collapse here in the A-share market will transmit back to US Stock Market!!"

"There's also another, less important point: if these stocks are sealed limit down, even if Goldman Sachs wants to cut their losses and sell the shares, no one will buy them!!"

"You didn't think most of these limit down orders were placed by other people, did you?"

Leng Nuannuan's gaze toward Wang Lin instantly filled with admiration!

As for Li Yuanyuan, she was already immune to Wang Lin's methods.

Or rather, she now believed Wang Lin was omnipotent in finance.

Achieving this was perfectly normal!!

This was the Brother Lin she loved the most!

Li Yuanyuan laughed and said, "Nuannuan, you're only realizing how amazing Brother Lin is now?! I predict tonight will be another bloodbath for Goldman Sachs!!"

.

The news about the dozen or so stocks hitting limit down in the A-share market also reached the US Stock Market side.

The US Stock Investors who were long-term holders and happened to buy Goldman Sachs Group stock felt like the sky was falling!!

Yesterday, a wave of negative news led to a collapse of over 6 points for Goldman Sachs Group at its peak.

It barely managed to pull back near the close, settling around -4%.

Who would have thought that upon waking up this morning, news would arrive from across the pacific that the A-Share stocks heavily purchased by Goldman Sachs had all hit limit down.

This event itself was nothing and didn't directly affect them.

But the resulting propagation effect made them uncomfortable.

Because panic is contagious.

Heaven knows which funds will be scared off by the short sellers' offensive today, leading them to cut losses and run!!

Therefore.

Those who didn't run yesterday regretted it immensely, as judging by the current situation, today would likely be another gap-down open!!

Pre-market trading confirmed their fears.

Goldman Sachs gapped down again by over 3 points.

It was utterly ridiculous; an outsider might think this was a stock with a few hundred million in market capitalization, not a company worth over 80 billion US dollars!!

Oh wait, including this pre-market gap-down, the total market value evaporated was tens of billions of US dollars.

And that wasn't the end!!

As soon as the market opened, Goldman Sachs' stock price fell like a flood breaking a dam!

From yesterday's closing price of $164, it plummeted all the way to $152.55.

The drop exceeded 7 points!

A 7-point drop, based on its market capitalization of over 80 billion US dollars, meant $6 billion in market value evaporated instantly.

Those who were shorting were absolutely raking it in!!

Just look at the US Stock Market Stock Bar now.

"Awesome, so awesome! God bless, I finally get a day to feast!!"

"Haha, I opened a 3x short position, plus 5x leverage from off-exchange financing, and just by holding it overnight, I earned 15 times the profit!! I'm really taking off!!"

"The guy upstairs is a true big shot to dare play like that. Aren't you afraid a rebound today will wipe out your account?"

"Afraid? You clearly don't understand the situation. China's Junlin Finance is coming on aggressively, hitting Goldman Sachs with a series of combination punches that left them disoriented. Most importantly, Goldman Sachs has consistently failed to confront Junlin Finance head-on. What does this indicate? They have major internal conflicts!! If we don't short now, what are we waiting for?"

"That makes sense, but is it too late for me to short now!!?"

"That depends on how high your risk appetite is. Anyway, I think the profits can still run."

"If this decline holds today, even with the risk, I'll be able to buy a supercar outright!!"

"Haha, I went long on Goldman Sachs' CDS, and I'm already raking it in. Today its increase is 50%. Why bother with common stock? Common stock is the battlefield for the big funds. We guys who put our heads on the line need to feast in the most dangerous places!! Or suffer the worst beatings!"

CDS, mentioned earlier, stands for Credit Default Swap!

Before shorting Goldman Sachs, Wang Lin had already bought $6 billion worth of this instrument.

Goldman Sachs' CDS price has skyrocketed 70% in two days!

This means everyone believes Goldman Sachs' credit default is a foregone conclusion!

Or rather, everyone is frantically arbitraging!!

As for the bulls, they were utterly defeated today.

Especially the Stock Investors who had followed Goldman Sachs for many years; they had made huge profits every year, but this year felt cursed.

From the beginning of the year until now, the total annual gain was only slightly over 8 points.

But they nearly gave it all back yesterday alone, saved only slightly by dividends.

However, today's gap-down open combined with the post-open flood-like selling caused their mentality to explode.

A whole year's hard work was gone, and even adding the dividends wasn't enough to cover the losses.

Was this still Goldman Sachs Group?

Was this the long-established top investment bank on Wall Street?!

What happened to its promised market guidance?

Why did they only see Goldman Sachs being led by the nose over the past few days?

"Damn it, Goldman Sachs is failing too. I really can't hold on anymore, I'm cutting my losses!!"

"I want to cut losses too, this is disgusting. Two days wiped out a whole year's gains. What's the point of playing anymore?"

"What about being 'friends of time' as promised? One year of time, and this is the result?!"

"Look at those people playing the Goldman Sachs CDS; it almost doubled in two days, while we here are bleeding dry!!"

"Cut losses, we must cut losses!!"

.

Inside Goldman Sachs Group, David Solomon was completely numb watching these scenes unfold.

He could already imagine that once this matter passed, his current position would likely be taken by someone else.

"Kevin!"

David was truly suffering.

Kevin was the culprit behind all this; he was the one who provoked Wang Lin!!

David now understood Wang Lin's series of combination punches, which truly left him reeling.

The most crucial point was that Goldman Sachs genuinely lacked liquid funds right now.

He didn't know how to explain the specifics, but the company simply had no cash on hand.

This was what distressed him the most.

He actually had some thoughts.

Even if Wang Lin was powerful, one person couldn't withstand the entire Goldman Sachs Group!!

After all, the energy possessed by a top investment bank with a market cap of over $80 billion is terrifying!

Yet, now they were being beaten by a newly emerged Chinese tycoon worth hundreds of billions, unable to fight back even once?

This was simply too fantastical.

But the reality was exactly this, and David felt helpless; he was being restrained.

"Perhaps the person behind this has reached an agreement with Brother Lin through the market: Brother Lin makes money, gains business in the Asia-Pacific Region, and even acquires shares in Goldman Sachs Group, using this as an opportunity to step into the international market!"

"And what Brother Lin must do is aggressively crush our Goldman Sachs Group stock price to force my resignation!"

"If that's the case, all I can say is, what a superb tactic!!"

"Fine, if you're going to play like this, I accept it!!"

David truly had no options left now.

He felt like someone whose authority had been hollowed out. The stocks in the Asia-Pacific Region couldn't be sold, and liquidity was completely locked up.

Everyone on the board of directors claimed they would contribute funds and strength.

But not a single person acted!

Faced with this situation, what could he do?

"I'll wait one more day. If it continues to fall tomorrow, I quit!!"

...On the second day of officially shorting Goldman Sachs, Goldman Sachs Group fell by -7.3%!

The intraday low reached a drop of 10 points, before recovering slightly over 2 points by the close.

And judging by appearances, it would fall again tomorrow.

"Damn it, in this situation, not even a god could save us!!" David Solomon hardened his resolve today and used all the funds he could mobilize to pull up the market.

But all he got in return was even more ruthless selling pressure.

Seeing this, he knew that any further struggle was useless.

This major cleansing of Goldman Sachs was inevitable!!

"If it drops again tomorrow, I'm raising the white flag and surrendering!! Let whoever wants this frustrating job take it!!" David was furious!!