"Okay!"
Frederic heard Su Yi's plan to not stop until he blew up the main short-selling institutions in the market, he only pondered for a moment before quickly nodding, smiling and saying,
"Historic opportunities naturally require extraordinary courage. Our institution currently has billions of dollars in reserve funds available.
I will use these billions of dollars to bet with Mr. Su on this one. We are betting that the outcome of this Brexit referendum will exceed most people's expectations, resulting in a final vote for Brexit.
We are also making a big gamble that, under such extreme sentiment, the Bank of England will not dare to continuously release large amounts of its dollar foreign exchange reserves to forcefully prop up and stabilize the pound's exchange rate.
As long as these two points are within our expectations, within our plan. Then, the strategy Mr. Su just mentioned will likely succeed."
Su Yi heard Frederic's decisive words, nodded slightly, and replied,
"Thank you, Mr. Frederic, for your trust. Since Mr. Frederic agrees with my plan and is willing to execute it, then we should continue to collaborate on trading."
"Naturally," Frederic chuckled.
"Count me in too."
Inside Huayin International, Kong Fansheng from the Investment Department 1 gritted his teeth and replied,
"It would be truly regrettable not to seize such an excellent opportunity to blow up the main long-side players in the market, create extreme market movements, and capture even greater profits."
"Okay." Su Yi nodded, "But... does Manager Kong have this authority?"
Kong Fansheng nodded and said,
"Before this round of pound exchange rate investment projects concludes, I naturally have absolute dominance over the strategies in investment trading."
"Old Kong, you..." Meng Shengfei paused and then said, "Count me in too."
Seeing Su Yi's confidence and that 'Evolution No. 1', the main hedge fund managed by Frederic, was willing to execute this trading strategy, he quickly realized that the probability of this strategy succeeding was extremely high.
He also instantly realized that his previous strategy of having traders largely reduce their holdings and cover short positions was completely foolish and wrong.
And after realizing this...
Especially after witnessing Su Yi's foresight and judgment in this round of pound exchange rate speculative trading.
He naturally quickly made the decision to correct his previous strategy and continue trading according to the strategy formulated by Su Yi.
What's more, 'Huayin International Investment Department 2', which he manages, has already made over 1.5 billion US dollars in profit in the pound exchange rate market.
With this huge floating profit.
He believed that even if they continued to increase short positions and squeeze the long institutions in the market.
If unexpected changes occurred in market news or unexpected trends emerged in market movements, exiting without loss would still be entirely possible.
And to use floating profits to contend for even greater gains.
This investment strategy authority was entirely within his scope of power, without needing to apply to the group or direct superiors.
"Good." Su Yi's smile grew wider when he saw Meng Shengfei also agree to join.
To leverage market sentiment and continue a unilateral squeeze, forcing many main long institutions in the market to execute concentrated stop-loss liquidations as their confidence collapses, thereby causing a more severe long-on-long sell-off in the market, he could not achieve this solely with the capital he controlled.
That is to say...
To fully implement the strategy he just described, the capital still needed to be invested was an astronomical amount.
In this situation, the more capital involved in this strategic trading, the easier it would naturally be for his strategy to succeed, allowing him to earn more profit from the pound exchange rate market.
Therefore, as long as both Meng Shengfei and Kong Fansheng were willing to join, he naturally had no objections.
Just after the four had a brief discussion again and formulated a new trading strategy...
Immediately afterward, all traders in the internal trading rooms of the three main institutions – 'Huayin International', 'Huayi Capital', and 'Aberdeen Asset Evolution No. 1 Hedge Fund Trading Department' – began to quickly execute the trading instructions of their respective fund managers.
Utilizing the floating profits in the accounts they managed, they massively and collectively increased their short positions again on the pound exchange rate market.
And with these main institutions further increasing their position trades.
This was accompanied by tens of millions, even hundreds of millions of dollars in market value, of main short-selling contract orders, crashing down onto the pound exchange rate market.
The pound exchange rate's market trend instantly began to plummet again, breaking through the 1.4200 and 1.4150 points in just one or two minutes, falling back to its intraday low and the historical low set during the 2008 financial crisis.
"Damn it... it fell back again so quickly."
Some retail investors who had just speculated on going long on the pound watched the exchange rate quickly fall back to its 2008 historical low, and for a moment, couldn't help but curse.
"Sigh, this rebound is too weak, isn't it? It feels like the market has truly shifted completely to the bears."
At the same moment, on online forex trading platforms, other retail investors who were long also sighed helplessly.
"It really is a complete bear market now. Whether it's speculative long or investment long... it feels like a dead end; there's no way to make a profit."
"I just had $20,000 in profit, and now, in just a minute or two, it's instantly turned into a loss."
"Could it be that today's national referendum will really end in Brexit?"
"According to the final referendum results released by various districts so far, the number of people supporting Brexit has already exceeded those supporting Remain by nearly 220,000. It feels like this situation is difficult to reverse."
"It all depends on the voting results from core urban areas like London, Manchester, Leeds..."
"Why haven't the voting results from these major core areas been announced yet?"
"Most of the UK's population is concentrated in these major core areas. Without their voting results, the final referendum outcome remains uncertain."
"It's a shame the market has already crashed."
"It's not a complete crash until the pound exchange rate breaks below the 1.4000 mark."
"It's not exactly a crash, but the long-side's confidence is indeed very low right now."
"What about the Bank of England? What exactly is the Bank of England doing? Didn't the Bank of England say before that it would firmly maintain the stability of the pound exchange rate market?"
"Given UBS's abandonment of the Swiss franc exchange rate back then, I don't think the Bank of England is trustworthy."
"I also don't think we can trust the Bank of England's so-called rescue strategy. After all, if a rescue strategy were truly effective, it should have been implemented months ago; it wouldn't have let the pound exchange rate fall to this point."
"But shorting here isn't appropriate, is it? It's already at a historical low."
"Are you saying that this Brexit crisis could even surpass the 2008 financial crisis?"
"That's hard to say. Anyway, I'm firmly bearish."
"Hmm... strange. The decreasing number of shorts from fifteen minutes ago is now rapidly increasing again. It seems a new, massive short-selling momentum is forming."
"Holy shit, it's not actually going to break below 1.4000, is it?"
"I feel like nothing's impossible."
"Are they going to force me to stop-loss again? I just stopped-loss a wave around 8 AM."
"Whether it can break below the 1.4000 mark probably still depends on the voting results from numerous subsequent polling districts. As long as the advantage of those supporting Brexit continues to widen, further extending to 300,000 or even over 500,000, then it's entirely possible for the pound exchange rate to continue falling below the 1.4000 mark."
"Sigh, it's such a pity I didn't short above the 1.5000 mark!"
"Before the official vote counting for the referendum began, who would have thought that the number of people supporting Brexit would consistently lead?"
Amidst intense discussions among countless retail investors, speculative funds, and numerous speculative traders on major global forex investment platforms, some bearish, some bullish.
Seeing the pound exchange rate once again touch the low point of the 2008 financial crisis.
The main long institutions in the market that had not yet had time to massively reduce positions, stop-loss, and liquidate, as well as countless long-side speculators, felt an increasing surge of panic.
Even within the Bank of England in London.
A group of central bank committee members, including Governor Brian, stared at the pound exchange rate teetering around the 1.4100 mark.
Although their faces were calm, they felt an inexpressible tension internally.
"Governor, the main short-selling institutions in the market are still pressing the squeeze," Committee member Clement said with a frown. "Once the pound exchange rate breaks below the 1.4000 mark, which is the final psychological defense for the longs, the trend is likely to completely collapse. This will have a huge impact on us and cause our bank enormous losses."
To avoid causing even more extreme emotional fluctuations in the market.
The Bank of England had used Bank of England funds to establish a large number of long positions in the market, but had not yet liquidated these positions to exit.
Once the pound exchange rate continued to plummet.
This massive portion of long positions they had established in the market would also suffer astronomical financial losses.
However, to uphold their firm determination and commitment to maintaining market exchange rates, and to preserve the central bank's confidence in supporting the market and its credibility.
In the current situation, they precisely could not execute a large-scale concentrated stop-loss on their positions.
Because, once they carried out a large-scale concentrated stop-loss on their positions.
Then, the well-informed major long and short institutions in the market would instantly detect their unusual trading activities through dedicated trading seats.
And once news spread that the Bank of England was massively and collectively cutting its long positions.
It would mean that the market's most resolute long-side players had wavered.
This would cause a market avalanche in an instant, leading to an even more disastrous flash crash in the pound exchange rate, and causing a complete collapse of market long-side confidence.
This outcome...
was clearly not what the committee members of the Bank of England wished to see.
However, the expected trend of the referendum results was entirely contrary to their previous expectations, and at the same time, the main short-selling institutions in the market were furiously squeezing positions.
This meant that even if they didn't concentrate on cutting losses and stopping out at this point.
It would probably be difficult to hold the 1.4000 mark and reverse the continuously collapsing long-side confidence in the market.
"What about the final voting results from the major districts?" Brian adjusted his glasses, ignored Clement's words, and asked his secretary, "Is there any turnaround?"
The secretary shook his head and said,
"At this time, the announcement of the referendum results and the method of vote counting are carried out independently by each district. The government cannot intervene directly or change the results. So... what we can do is very limited. Currently, everyone... can almost only leave it to fate."
"Heh, leave it to fate?" Brian sneered and said, "Do these guys know the predicament we are currently facing? Do they know that the wolves of Wall Street are massively squeezing shorts? If we really leave it to fate, we will lose over 10 billion US dollars within two hours."
"Get me Lord Andrew's call," Brian urged with a grim face after a pause.
The secretary nodded, quickly got through to Andrew, the Chancellor of the Exchequer, for the operator, and handed the phone to Brian.
Brian took the phone, composed himself, and then said,
"Lord Andrew, our situation is very dangerous right now. We need to know the final outcome of this referendum in advance to implement a strategic response immediately. Otherwise... facing these guys from Wall Street, our losses will be severe. At the same time, a complete collapse of the pound exchange rate will directly affect our central bank and even the pound's credibility, causing a huge impact on our country's subsequent economic recovery."
"Alas, for absolute fairness and justice, the results of this referendum are being independently counted and live-streamed globally by each district as they become available," Andrew sighed and said, "Let alone me, even the Prime Minister will only know the final result after all district referendum results have been completely announced."
"Then we..."
Brian was speechless for a moment. After a long pause, he finally took a deep breath and said,
"We can only abandon the exchange rate."
"Is it certain we can't hold it?" Andrew asked.
Brian replied,
"Without playing our last card, we are no longer able to reverse the market's trend and situation."
"Then abandon it," Andrew said. "Whatever the final outcome, I will bear the responsibility."
"Alright."
Brian heard Andrew's words, and the tension in his heart finally eased a little. He replied,
"Then the subsequent fate... will be left to the market itself. We just hope our public is rational and wise enough to help us turn the tide."
With that, Brian hung up the phone.
Then, he turned and looked around at the committee members, saying,
"Since the 1.4000 mark cannot be held, then abandon it and stop losses. The subsequent fate will be left to our people to decide. We have already tried our best, but we are powerless to change the situation; this is all we can do."
The other committee members exchanged glances, all silent.
Then, after about ten seconds, everyone nodded in agreement.
And after receiving unanimous authorization from the committee, the Bank of England, as the last main long-side player in the market, along with its affiliated institutional seats, began to massively and collectively stop-loss their currently severely losing long positions.
Accompanying the Bank of England's complete abandonment of the pound exchange rate.
The instant the Bank of England began its massive, concentrated stop-loss liquidation.
Numerous large capital institutions worldwide, monitoring this institution's unusual movements, immediately detected the anomaly.
Immediately afterward, orders from countless major long and short institutions across global trading markets began to be sold off in concentration.
An astronomical volume of main short-selling orders gathered, and countless long-side stop-loss orders crashed onto the market.
In just an instant...
In the eyes of hundreds of millions of forex traders worldwide.
The pound exchange rate once again plummeted and crashed at lightning speed, directly crossing 1.4100, 1.4050, and 1.4000, breaking through the long-side's final defense at 1.4000, and reaching a historical low for the pound exchange rate since the 2008 financial crisis.
(End of Chapter)