The Great Sage Returns from Ten Years of Imprisonment

Chapter 349 The Frenzied Extreme Short Squeeze

Under Lingyun's remote command, several investment teams and state-owned financial institutions quickly closed all short positions in the Asia-Pacific financial market, then reversed their positions to go long, preparing to reap another harvest.

Stock markets across the Asia-Pacific region cooperated fully, experiencing a continuous plunge throughout the day, with the largest drop almost matching the short-to-long point given by Lingyun.

When the stock markets in European countries and the US opened in the afternoon and evening, they all plummeted.

Unlike the Asia-Pacific financial markets, European and American stock markets saw relatively smaller declines today, and US stocks finally showed signs of stabilizing near the close.

Several major European stock markets, including those in Germany, France, and the UK, saw declines ranging from -4% to -5% throughout the day.

Although the US stock market also plummeted, the decline was smaller, with a final drop of around 3%.

Ling Yun had anticipated this situation.

Around 9 p.m., he issued an order for all investment teams to close out their short positions in the European financial markets.

Then, half an hour later, they reversed course and went long, preparing to reap another harvest in the European financial market.

Around 10:40 p.m., he issued another trading order.

The investment teams and state-owned financial institutions were instructed to close all short positions in US stocks and wait until after midnight to go long on the US stock market.

Upon receiving his trading instructions, all investment teams and state-owned financial institutions executed them resolutely without the slightest hesitation.

As a result, several investment teams and numerous state-owned financial institutions made a fortune.

Of course, Ling Yun himself also made a fortune.

His women, Da Meiyuan and Yanzi, all saw their wealth increase along with the tide!

After issuing a series of trading instructions and confirming that each investment team would begin execution, Ling Yun immediately breathed a sigh of relief.

The situation was settled, but he did not get up and leave the study to be intimate with Da Meiyuan and Jia Jingwen.

Instead, he casually clicked on the stock pages of Porsche and Volkswagen, and watched the spectacle with great interest.

This afternoon, when the German stock market opened, Volkswagen's stock price jumped 66%, shocking countless people.

And this is just the beginning; the most exciting part is yet to come!

Starting with a surge at the opening of trading in the afternoon, Volkswagen's stock price continued to soar, showing signs of reaching new heights!

To date, Volkswagen's stock price has surged by more than 100% and continues to soar.

On the trading floor, Volkswagen's stock is showing signs of an extreme short squeeze, with all the global short sellers who previously heavily shorted Volkswagen stock now frantically buying up Volkswagen shares at all costs.

Unfortunately, the number of Volkswagen shares circulating in the market is pitifully small, which is no exaggeration to say that it is just a drop in the ocean!

The main reason for this extreme short squeeze is an announcement suddenly released by Porsche yesterday.

In its announcement yesterday afternoon, Porsche publicly declared for the first time that it now owns a 72% stake in Volkswagen.

They are only a stone's throw away from gaining full control of Volkswagen with a 75% stake!

If we include the 20.1% gold shares held by the Lower Saxony government, which are permanently locked up and not tradable, then the remaining tradable shares on the market are less than 8%.

But who knew that CIC had secretly acquired more than 2% of those 8% of circulating shares, making a profit by acquiring a rare commodity!

In other words, only about 5.5% of Volkswagen's stock is actually circulating in the market.

However, short positions in Volkswagen's stock account for as much as 10.4% of the market, with many short sellers engaging in naked short selling!

The gap between the two is close to 5%. With such a huge stock gap, it would be strange if an extreme short squeeze didn't occur!

That's why, as soon as Porsche released its announcement yesterday, countless short sellers around the world immediately realized it.

The sky is falling!

If you can't buy back Volkswagen shares in time to cover the losses, there are only two possible outcomes!

They might lose everything, returning to square one overnight, or they might go to the rooftop and jump off to end it all!

That's why Volkswagen's stock performed so wildly after the German stock market opened today, surging against the market trend!

If it weren't for the extreme market conditions triggered by Volkswagen's stock, the drop in the German stock market today would have been far more dramatic!

As they were talking, Volkswagen's stock price quickly rose by more than 5%.

More and more short sellers are rushing to buy stocks, while sell orders are few and far between!

Under these circumstances, it's a foregone conclusion that Volkswagen's stock price will soar to new heights!

Seeing this, Ling Yun chuckled smugly, then picked up his phone and started calling Chairman Lou.

The call connected instantly, and Lou Dong's hearty laughter immediately followed.

"Good evening, Xiaoling. If I'm not mistaken, you're probably calling me about the extreme short squeeze in Volkswagen's stock, right?"

"Volkswagen's stock has surged by over 110% today and is still rising rapidly, like a runaway horse, which is astonishing."

"At this rate of increase, and with leverage of about three times, CIC's 2.2% stake in Volkswagen has already yielded a profit of more than three times its initial investment."

"This is amazing. More importantly, the Volkswagen stock's performance and the extreme short squeeze are exactly as you predicted. It's incredible. If you hadn't called me, I would have called you right away."

Ling Yun smiled calmly, then replied:

"Haha, Mr. Lou, you're incredibly insightful! I did call you because of the phenomenal surge in Volkswagen's stock price; I wanted to discuss this matter with you."

"This seems incredible, but as long as you understand Porsche's strategy, it's not hard to guess the outcome. From the day Porsche secretly acquired Volkswagen's shares, this result was already predetermined."

"According to my calculations, there's currently a 5% shortfall in Volkswagen stock on the market, which is impossible to fill. This extreme short squeeze has only just begun; even more frenzied market movements are yet to come!"

"The reason I made this call is to remind CIC that it must make reasonable use of this 2.2% stake in Volkswagen. It must not be released before the strategic objectives are achieved, and it must not be swayed by short-term gains."

"CIC will only release these shares if two conditions are met: first, Volkswagen's share price exceeds 1000 euros; second, CIC enters Volkswagen's board of directors and gains a certain degree of influence..."

Before he could finish speaking, Mr. Lou on the other end of the phone exclaimed in surprise.

"Is it possible for Volkswagen's stock price to break through 1000 euros? If that happens, wouldn't Volkswagen become the world's most valuable listed company?"

Ling Yun smiled, then gave a resolute answer.

"This is bound to happen, and within a day or two, Volkswagen's market capitalization will reach the highest in the world."

"Given the current extreme short squeeze, Volkswagen's stock price could easily surge tenfold or even more within a day or two."

"As a result, the short sellers who previously went on a rampage against Volkswagen's stock have suffered losses of at least tens of billions of euros, or even hundreds of billions of euros. Many short sellers will be wiped out overnight, and some may even commit suicide."

"This involves financial stability. Germany is not a beautiful country. The German government will not tolerate this extreme short squeeze continuing, nor can it accept the result of a large number of short sellers going bankrupt overnight. You should know that many of these short sellers include German financial institutions."

"The German government will definitely intervene and use its administrative power to force Porsche to release a certain number of Volkswagen shares to short sellers who are about to go bankrupt. We need to reach a deal with Porsche and Volkswagen before the German government intervenes to maximize our profits..."

Lou Dong on the other end of the phone fell silent, seemingly shocked once again.

After Ling Yun finished analyzing the situation, he pondered for a long time before letting out a sigh.

"You've calculated everything flawlessly! You're ruthless! There's something I didn't have time to tell you earlier: a representative from the Porsche board just contacted China Investment Corporation!"

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