Caroline Ellison's Role in FTX Crash Trading Crypto

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Alameda traded heavily on the FTX platform, meaning it sometimes benefited when FTX’s other customers lost money, a conflict of interest that Mr. Bankman-Fried sometimes seemed uncomfortable discussing in interviews
According to Caroline Ellison, FTX gave Alameda Research a lot of credit. "FTX effectively extended a substantial amount of credit to Alameda Research, and in the end, that margin position became severely stressed and it blew out."

A negative $1.31 billion margin position, as disclosed in the FTX documents, is a massive hole. Margin positions are trades made with borrowed funds, and if the trader is unable to maintain the minimum required margin, the position is usually liquidated to repay the borrowed funds. The large margin position shared in May 2022 occurs around the same time frame as the Terra LUNA debacle

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