Nine mystery accounts. More than 200,000 short-dated put options. A $12 million bet on two Chinese brokerage stocks collapsing.
Then, just hours after the U.S. market closed, Chinese regulators announced a major crackdown.
When Wall Street reopened, shares of Futu and Tiger Brokers plunged—and the options were suddenly worth more than $100 million.
Susquehanna International Group, one of America’s largest options market makers, says it lost more than $70 million on the other side of the trades. Now, in a federal lawsuit, the firm alleges that unidentified traders may have used confidential information about China’s regulatory action before it became public.
So who was behind the trades? How did nine accounts appear to time the crackdown so precisely? And could a policy secret from Beijing have been turned into a nine-figure profit on Wall Street?
In this episode, we explain how put options work, reconstruct the extraordinary trading timeline, examine the allegations in Susquehanna’s lawsuit, and follow the growing investigation into one of Wall Street’s most remarkable alleged insider-trading schemes.
This is the story of a $12 million bet, a regulatory announcement from China—and a $100 million mystery.
#WallStreet #InsiderTrading #China #OptionsTrading #Futu #TigerBrokers #Finance #InvestigationÂ