CryptoCrazeTx
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India cracks down on Jane Street’s billion-dollar expiry game
Two hours ago, Indian regulators froze $5 billion of Jane Street’s profits and effectively kicked them out of the market. The reason: an aggressive expiry-week strategy that finally crossed the line.
Here’s how it worked (around day 15–18 before index expiry):
⚪️In the morning, they’d aggressively buy BankNifty components on both the cash and futures markets.
⚪️This would trigger a signal on the options market — other players see the index rising.
⚪️Meanwhile, Jane Street would sell calls and buy puts on the more liquid options side, which hadn’t caught up yet.
⚪️After noon, they’d dump the cash and futures positions, dragging the index back down and profiting from the puts.
A classic pump-and-dump — just done with billions in working capital.
They got caught because the losses were too consistent. They lost money every day on cash, futures, and index futures — except expiry day, when the real profit came from the options.
Two hours ago, Indian regulators froze $5 billion of Jane Street’s profits and effectively kicked them out of the market. The reason: an aggressive expiry-week strategy that finally crossed the line.
Here’s how it worked (around day 15–18 before index expiry):
⚪️In the morning, they’d aggressively buy BankNifty components on both the cash and futures markets.
⚪️This would trigger a signal on the options market — other players see the index rising.
⚪️Meanwhile, Jane Street would sell calls and buy puts on the more liquid options side, which hadn’t caught up yet.
⚪️After noon, they’d dump the cash and futures positions, dragging the index back down and profiting from the puts.
A classic pump-and-dump — just done with billions in working capital.
They got caught because the losses were too consistent. They lost money every day on cash, futures, and index futures — except expiry day, when the real profit came from the options.
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