What is the common definition of the term 'blow up' as in "his hedge fund blew up in 1999"? Is it 'the market moved against him and margin calls rendered the fund insolvent and in debt"? Investors get no money back.... The business of the fund failed and everybody ruined. Or, I believe I read in Put Bull that Schwartz said that when redemptions were greater than 20% the fund would usually close because the numbers were so bad that it is easier to close the fund and start a new fund than to carry that year's results on the books. Investors get some money back. The business failed but investors are still alive but not whole. Or, when redemptions of a major percentage of investors exceeded the ability of the fund to continue. In this case investors get some of their investment returned. Is the term 'blow up' reserved only for those occasions when investors do not recover some of their funds? If so, how little need the investors receive to avoid saying that the fund had blow up? I have no experience with hedge funds that have blown up thankfully and would like more experienced posters thoughts and comments. Thank you!