I just came across a rumor: a certain bank was forcibly liquidated during this wave of short-selling.

Here's what happened roughly—
This bank is a heavyweight player in the silver futures market, holding long positions worth hundreds of millions of ounces for a long time.

Last Friday, after silver prices broke above $70, the bank received a margin call notice, demanding more than its available liquid funds.

They were asked to supplement $2.3 billion in cash collateral before Sunday morning.

In the following 36 hours, the bank scrambled to raise funds:
Contacted trading partners, sold assets, sought bridge loans, but no one was willing to take over.

It is said that after reviewing its derivatives books, several major Wall Street banks generally judged that this bank was already a “zombie bank,” merely struggling to stay afloat.

The timeline is as follows:
Sunday at 2:47 AM, the bank notified the exchange it could not meet the margin call on time;
At 3:03 AM, the exchange initiated forced liquidation;
By 4:15 AM, all related positions were closed;
Sixteen minutes later, federal regulators officially took over.

If this news is true, the impact will be enormous, implying a chain reaction of default on a large number of derivative contracts.

Meanwhile, the Federal Reserve has injected an emergency $34 billion into the banking system through overnight repurchase agreements, further adding to the $17 billion injected on Friday.