Hedge Funds Drawn to Crypto's Big Short

The video discusses hedge funds' renewed focus on the crypto industry, particularly Tether, a stablecoin. Concerns arise about Tether's potential to depeg from the dollar, which could lead to significant market impacts. Hedge funds have been shorting Tether, but face challenges due to counterparty risks and Tether's opacity. Despite being unaudited, Tether remains widely used, raising questions about its reserves. The video explores the psychology of hedge fund managers and the complexities of shorting Tether, highlighting the potential risks to the broader crypto ecosystem.

How have hedge funds approached shorting Tether, and what challenges have they faced?

What psychological factors influence hedge fund managers' decisions regarding Tether?