"Absolutely Spectacular Meltdown": The Basis Trade Is Blowing Up, Sparking Multi-Trillion Liquidation Panic

We first had a sense that something was off two weeks ago when we read that the Fed was preparing to bail out basis traders, i.e., the largest, multi-strategy hedge funds in the world, including Millennium, Citadel, Point72, Balyasny, Exodus Point due to their staggering exposure to basis trade (see "Fed Urged To Bail Out Hedge Funds During Next Market Crash: Trillions In Basis Trades At Risk"). 

We then looked at the regulatory leverage among these usual suspects (whom we had been profiling ever since Sept 2019 when the first big basis trade blow up took place, to be followed just a few months later in March 2020 by the biggest basis trade collapse yet), and to our horror found that said leverage had almost doubled since the last time the Fed was forced to inject trillions to bail out the world's largest hedge funds under the guise of rebooting the US economy in the aftermath of the covid lockdowns...