This is similar to what bankrupted the Enron execs. When told to diversify their holdings from Enron stock, instead of selling the stock and buying other stocks

This is similar to what bankrupted the Enron execs. When told to diversify their holdings from Enron stock, instead of selling the stock and buying other stocks/etc, they borrowed against their Enron stock and used that to invest. When the stock came down it snowballed, they hit limits where they had to settle-up their loans, but to do that they had to sell large amounts of Enron stock that then dropped the price further. This is a dangerous game.