It's getting even crazier.
Some researchers are thinking hedge funds used FTX wrapped securities to fake stock locates for collateral. If this is true... everything is about to blow up.
I don't know anything about how it worked or who used it, etc. I wonder if it relates somehow to this idea of wrapped securities though.
Sounds like it was to allow people to move funds from crypto into US stocks. If that was the case and that business also went bankrupt then I think people lose whatever stocks they "bought" via FTX Stocks because they likely just tracked prices and made it look like people "owned" a security by updating a record that says they bought it.
If there were huge numbers of purchases of stocks through FTX by their customers but then FTX didn't actually purchase those stocks (like the recent findings that they didn't actually purchase the crypto) then I don't see how this makes any bit of difference to whatever stocks are in question. Its not like they were ever actually purchased and FTX is in bankruptcy so any FTX customers are left with legal avenues to get money back but it appears there's no money to get.
Compushare got yall so hard, lmao.