Lehman’s collapse was minor league compared to what’s coming.

Just like Bitcoin is the best-performing investment of all time — where 10 cents in 2010 would be worth nearly $110,000 today — it’s about to become something else entirely:

The trigger for the biggest short squeeze in financial history.

We’re not talking about a few over-leveraged traders getting wrecked.

We’re talking hundreds of billions in losses… vanished overnight.

Because counterparty risk in crypto has been completely ignored — again.

This is exactly the kind of systemic blind spot that Martin Armstrong has spent decades warning about. His global economic models have been frighteningly accurate — and now, his story is laid out in The World According to Martin Armstrong — a must-read if you want to understand what’s really coming.

💥 The Setup: This Time Really Is Different

Bitcoin has grown up — from cypherpunk experiment to Wall Street darling. But the DNA is still the same: hard supply, open markets, and ruthless consequences.

The problem now?

🧨 Spot ETFs are hoarding real Bitcoin — removing supply from circulation.

📈 Futures & options markets are stacked with synthetic shorts — IOUs backed by vapor.

💸 Institutions are gambling with leverage — assuming someone else will take the loss if it all goes sideways.

🚨 What Triggers the Squeeze?

1. BTC breaks $125K–130K
   Shorts start bleeding. Dealers begin hedging calls.
2. Gamma squeeze kicks in
   Every uptick in price requires more buying, not less.
3. Margin calls wipe out short sellers
   Leverage gets vaporized. Positions closed by force.
4. Derivative platforms hit the wall
   Some counterparties can’t pay.
   Collateral vanishes.
   Welcome to crypto’s Lehman moment — only faster and 24/7.

⚠️ The Real Problem: Counterparty Risk

This is the most misunderstood risk in crypto today.

Most Bitcoin exposure in hedge funds and structured products is paper-based — backed by margin, rehypothecation, and trust. When the price surges fast, and margin calls roll in, some players simply… can’t pay.

There is no central clearinghouse.

No Fed. No backstop.

If Bitcoin runs too hard, too fast, the system breaks itself.

📊 What This Looks Like In Practice:

• 📉 Shorts torched — $100–$300 billion in paper losses
• 💥 Major hedge funds and funds-of-funds hit margin death spirals
• 🧊 Exchange accounts frozen or clawed back
• 🏛️ Politicians screaming for regulation — after the fact
• 🧠 Retail wondering how they made money and still lost access to it

🧠 How to Prepare:

1. Avoid leverage – Period. You don’t win a short squeeze by trading like a degen.
2. Hold your own Bitcoin – Not ETF shares. Not futures. Cold storage. Your keys.
3. Know your exits – Pre-set sell targets. You won’t have time to think.
4. Watch the macro – Capital flow is king. And the best lens on capital movement is Martin Armstrong’s work, which you can explore here:
   👉 The World According to Martin ArmstrongBuy the Book

🧨 Final Thought

Bitcoin was built to reveal fragility — and the next short squeeze may expose just how fragile the system still is, even with institutions on board.

As Armstrong says:

“It’s never the price that breaks the system — it’s the collapse in trust.”

Are you holding an asset…or someone else’s promise?

Because when this squeeze hits, paper Bitcoin won’t save you.

https://khlfsn.substack.com/p/are-you-ready-for-the-coming-bitcoin