How a single family office triggered a multi-billion dollar market collapse
The arrest of Bill Hwang brings renewed scrutiny to the opaque trading strategies that once destabilized Wall Street. This video examines the indictment against the Archegos founder and the mechanics behind his firm's sudden implosion.
US authorities have charged Bill Hwang, the founder of Archegos Capital Management, with fraud, racketeering, and market manipulation. Alongside former CFO Patrick Halligan, Hwang is accused of using his firm to manipulate markets, causing significant damage to US securities participants.
The collapse of Archegos a year ago wiped over $100bn from the valuations of nearly twelve companies. By utilizing Total Return Swaps, the firm used borrowed capital from major institutions—including UBS, Credit Suisse, Nomura, and Morgan Stanley—to build massive positions in companies like Shopify, Farfetch, and ViacomCBS (now Paramount). These derivatives allowed the firm to accumulate multibillion-dollar stakes without leaving a visible footprint for the public to track.
