On May 22, the day Futu and Tiger collapsed, we exposed this as a blatant harvest: on the 7th, investment banks downgraded and released smoke, on the 21st, end-of-day Puts surged 580%, and on the 22nd, eight ministries and commissions triggered liquidation. Not a black swan, but a pre-written script. Looking back a month and a half later, every step was correct!
This video deeply dissects the insider trading evidence chain behind the collapse of Futu and Tiger on May 22nd, pointing out that it was not a sudden black swan event, but a meticulously planned script involving investment banks downgrading and releasing smoke on May 7th, dark pool position building from May 8th to 20th, a surge in end-of-life Puts on May 21st, and liquidation triggered by eight ministries on May 22nd.
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This price silence, the divergence of roaring options, in quantitative algorithms, this is one of the most classic internal trading fingerprints. If you say there is no "tiger warehouse" in here, I would die before I believe it. Many might say it's just a coincidence, just a market reaction to regulation as a negative. But if you watch today's episode, you will see the anomalous data in the options market, the divergence of cumulative volume distribution (CVD), the dark pool block trade characteristics, and the timing coincidence of company buybacks—these four independent evidence chains resonated highly within a very short window, forming a perfect closed loop, and the probability of this being a random coincidence is statistically almost zero. In fact, the script for May 22 started on May 7. First, on May 7, there was a cover‑down: Futu fell 13.76% in a single day, from $168 down to $144.89, erasing $3 billion of market value, with volume swelling to 3.48 million shares. On the same day, Tiger also fell 7.2% to $6.43, with volume at 3.57 million shares. The surface attribution was that Barclays cut Futu’s target price to $200, signaling weak first‑quarter financial expectations. The media uniformly blamed fundamental negatives. In reality, the downgrade was a smokescreen, with large capital using the fundamental downside to mask short positions and execute large‑scale strategic short building.
From May 8 to 20, these funds began building positions in dark pools. The spot market appeared calm, but frequent large block trades in dark pools occurred. Retail investors saw the candlestick stabilize, but could not see the under‑the‑surface currents. Where did these large trades happen? Off‑exchange. Thus, these orders did not enter the public order book. Yet even in dark pools, there are heavy footprints. This means about 70% of short‑selling activity bypassed the public market, completing chip accumulation through hidden off‑exchange channels. Moreover, the majority of the action targeted short‑term options, not spot, because options have asymmetric payoff and lower cost of risk lock‑in, offering higher returns.
Finally, on May 21st, Futu's intraday price once touched $125.45, but ultimately it only fell slightly by 0.69%, closing at $123.86. Tiger also fluctuated above $5.8 from May 20th to May 21st. What are technical analysts seeing? A signal for an oversold rebound? No. What are fundamental analysts seeing? Ah, the negative news is exhausted, so large retail investors began to enter the market to buy the dip. On that day, Futu's trading volume abnormally increased to 2.2 million shares. However, at 9:57 AM on the same day, the options monitoring system captured extreme Put sweeps for Futu and Tiger. This is a very, very crucial crime scene.
May 22nd was the day for liquidation and reaping. The CCP's document from eight ministries, coupled with a sky-high fine of 2.2 billion, was made public. Futu then once fell by 40%, and Tiger also once fell by 45%. The buying power in the spot market instantly became zero. As a result, the shorts who had positioned themselves earlier directly broke even. The Puts and options they held turned from deep out-of-the-money to in-the-money overnight, with returns of tens of times per contract. The entire script was closed. They aren't even trying to hide it anymore, this divergence of silent prices and roaring options.