New York (CNN Business) Editor's Note: A version of this story appeared in CNN Business' Nightcap newsletter. HEDGE FUND FAILA little-known hedge fund has caused widespread chaos on Wall Street. WHAT HAPPENEDArchegos Capital, a hedge fund few people had heard of, used borrowed money to build massive positions that propped up media stocks including ViacomCBS and Discovery. The hedge fund faced a so-called forced liquidation of its position, and that set off a bloodbath Friday that sank shares of ViacomCBS and Discovery more than 25% apiece. It also demonstrates the intricate web linking firms across Wall Street — and the risks to the banks providing large amounts of leverage.

Source: CNN March 30, 2021 00:00 UTC