I don't really understand the comparison of LTCM to FTX. Long Term Capital Management was a hedge fund. Hedge funds entire model are based on leverage and makin

I don't really understand the comparison of LTCM to FTX. Long Term Capital Management was a hedge fund. Hedge funds entire model are based on leverage and making big bets. Its customers were wealthy accredited investors and institutional investors who well understood this and understood the risks associated with hedge funds. FTX's customers had no such understanding that their deposits were being loaned out and used for making big bets.