I’m not sure investors who are rooting for hedge funds to fail get the big picture.

1/ SEC/Treasury/Congress will have hearings and slap new regs on the industry to prevent market manipulation and tighten up shorting guidelines.
2/ If HFs de-risk by 1/2, not only do shorts get closed, but up to $1T of normal equities like $AAPL $AMZN $MSFT $GOOG $FB $TSLA will be sold over days, depressing equity prices across the board.
3/ When fundamentals (earnings, cash flows, DCF valuations) cease to be useful in setting prices, anarchy takes over, and unregulated chat boards and research boiler rooms will become more important than the highly regulated world of WS research.

Be careful what your wish for.
You can follow @garyblack00.
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