Rehypothecation during a bull mutes upwards price action (ex. FTX). How does rehypothecation (mechanically) affect downwards price action during a bear? Outside of the psychological fear-contagion during a fund, exchange, etc collapse.

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Possibility?: declining prices trigger liquidation levels and cascading sells.

Flip side could be forced buying to maintain LTV ratios could provide support in a bear.

The first part is caused by long leverage.