Chapter 288: The Dark Forest Law

(To thank TIAN-YI, Fang Dongwei who likes white iron trees, Tu Mi Luo Jin, Wang Peng who loves strawberry cream cups, and Aiolos for their support and love, an extra chapter is added today!)
"What about the other institutions? What are those funds up to?
Fang Huan has caused such a stir, there can't be no one who knows, right?"
Bell asked.
"Yes! The news's gone viral! Those hedge funds were the fastest to run; they've reportedly already liquidated their positions.
Even the short-selling funds have run!"
"What?!" Bell's eyes nearly popped out of their sockets. "Those lunatics, they actually chickened out?!"
"Yes… as soon as they heard the news, they didn't even have time to place their short orders; they chose to cut their losses and exit…
It's said that a saying circulates among them:
'You may not believe in God, but you can't not believe in Su Hao.'
Fang Huan acted too quickly and too drastically this time; they couldn't keep up. To save their lives, they had no choice but to run…"
"Buzz—"
Bell's mind went completely blank.
"Short-selling funds," the most notorious pack of wolves in the financial world, a group of ultimate gamblers who risk their lives and believe in "fortune favors the bold."
At the same time, they are also Fang Huan's most loyal "believers," and Su Hao's fanatical fans.
This time, Fang Huan's actions were too fast and too sudden; even these followers didn't have time to keep up with the pace of his accumulation.
All they could do was run to minimize their losses.
The "Dark Forest Law" of the financial market activated instantly.
Even the most fanatical hunters showed fear.
This meant—
"The others... are probably all running away soon too."
Even the most fanatical people were starting to act rationally; this meant that a truly terrible trouble was brewing!
"Pass on my orders!" Bell abruptly stood up, a resolute ruthlessness flashing in his eyes.
"I'll report to the board right now! Notify all departments, immediately! At once!
Clear all financial products related to the UK!
Sell all our holdings in the UK stock market, regardless of the cost!
Fast! Faster than anyone else!"
"But! Such a massive sudden sell-off, our losses will be..."
"Losses?!" Bell roared.
"Everyone's sneaking away!
If we don't clear our positions now, once everyone else has run, all we'll have left is a pile of worthless paper!
Stop talking nonsense! Execute it!!"
The final 24 hours.
Time burned by, measured in seconds.
Goldman Sachs finally cleared all its positions.
Bell began straightening his tie, preparing to face the storm from the board.
He sighed deeply, gazing eastward.
Fang Huan… Su Hao…
What kind of cards are you devils holding?
However, the instant he pushed open the door, a thought that sent chills down his spine and terrified his soul cleaved through his mind like a black lightning bolt.
"Wait... what if... what if there's no 'card' at all?"
Unsurprisingly, no events occurred within the past 24 hours that could shake the British economy.
However, everyone was gripped by the fear instilled by the name Fang Huan, falling into collective madness, frantically selling off everything they held.
All because the bet was placed by Fang Huan Investment.
That man's name is Su Hao!
Because his past record was too brilliant, too unbelievable, so much so that every move he made became the "truth" of the market!
Therefore… everyone frantically sold out out of fear.
"My God…" Bell felt utterly hopeless.
Even if all of this was just Fang Huan bluffing, it no longer mattered.
Because Fang Huan himself had become the "event"!
And Goldman Sachs and numerous funds had personally lit the fuse, directly igniting the entire powder keg!
***
Ten Downing Street, England.
Prime Minister Theresa May had just temporarily stabilized her faltering approval ratings by extending the negotiation period with the European Union.
Although criticism was incessant, she believed that as long as the negotiations were ultimately successful, history would give her a fair evaluation.
She would be recorded in history as a great politician!
However, when she saw the chart on the screen, her smile froze instantly.
“What…what the hell is going on?!”
The moment the market opened, the London Stock Exchange index crashed!
Without warning, like someone falling off a cliff, it plummeted straight down towards hell at a horrific angle!
The market immediately activated its circuit breaker mechanism, attempting to calm everyone down.
But it was utterly useless.
Panic spread like a plague, and the market's sell-offs, like an endless flood, instantly engulfed everything!
“Your Excellency! All institutions, as if by prior arrangement, are simultaneously liquidating their positions! All funds are frantically selling!”
“Why?! Why?!”
Theresa screamed incoherently.
“We…we don’t know the reason…”
“What?! What did you say? You don’t know the reason?!
You mean, without any negative news, the entire financial elite of the market collectively went mad, dumping stocks like garbage?!”
The rise and fall of the stock market must have its reasons.
But now, nothing has happened, yet the market seems to be experiencing a premature Great Depression.
This completely overturned her understanding.
“Could it be… that the market thinks we're going to forcibly decouple?”
“No, Prime Minister. We've already informed all brokerage channels, making it clear that there will be no forced decoupling.”
“Then that's all! What's wrong with them?!”
In the deathly silence, the Chancellor of the Exchequer, a man whose face was already pale, now turned as white as a sheet.
His lips trembled as he uttered the name that even he felt burned by.
“It’s… Fanghuan Investment.”
“What?”
“I just received the report too.
A financial company from China, Fanghuan Investment, established a large-scale short position against the UK 72 hours ago through a series of highly leveraged financial derivatives…”
“And then…and then?”
“Then, the news started spreading in the financial world.
Everyone was watching and speculating.
Until the final 24-hour window, panic completely erupted.”
"Institutions, funds… everyone's gone mad. They'd rather believe Fang Huan's bet than our government…
And so… this is what happened."
The Chancellor's voice trailed off, filled with a sense of absurdity.
"...Why?" Theresa wondered if her ears needed repair.
"Why?" The Chancellor's eyes were empty and desperate. "I…I don't know…"
Theresa was completely stunned.
Her mind couldn't process this utterly ridiculous information.
Just because…
A company far away in the East placed a bet.
The entire British financial market was terrified, and everyone joined in the panic selling, completely shattering our market…
It literally crashed?
“This…this is utterly absurd…”
Her voice trembled; it was simply too ridiculous.
But the problem was, this absurd scene was unfolding in reality!
“The most devastating thing is the exchange rate, Prime Minister!” the Chancellor of the Exchequer’s voice continued,
“The value of the pound has plummeted by 7% in just a few hours! If the panic among institutions continues to spread to the general public…then…”
He swallowed hard, uttering the word that terrified every British politician.
“Then, we will face… a second ‘Black Wednesday.’
And, it may be far larger than the last one!”
A certain Wednesday.
That was the day the short-selling giants achieved their legendary status, utterly crushing the Bank of England.
“You mean… during my term, a financial crisis even more devastating than ‘Black Wednesday’ might erupt?”
“Not possibly, Your Excellency. It’s already here.” The Chancellor of the Exchequer closed his eyes in despair.
“We are trying our best to stabilize the situation, but this panic has spread from institutions to retail investors… in fact, it has already…”
He couldn’t finish.
“I warned you long ago! Fanghuan Investment is a time bomb! We must take precautions!”
“…”
Theresa couldn’t hear a single word her advisors said.
Her mind was blank; she didn’t even know how to react.
Could this really be possible?
Without any substantial negative news, a single bet by a financial company in the far East could trigger a domino effect.
Could it cause a collective panic sell-off, ultimately destroying an empire's financial market?
Could it really... be that possible?