What you need is any pool of securities that is devalued by more than the capital base of the company. It was the way that the post partnership, publicly traded

What you need is any pool of securities that is devalued by more than the capital base of the company. It was the way that the post partnership, publicly traded investment banks were financed that ultimately led to their collapse. When you borrow short and lend long with 30X leverage you can never have a serious market correction. Otherwise your counterparties get nervous and their refusing to continue to lend becomes a self fulfilling prophecy. Its not the first time we have seen this and it won't be the last.