Amun Ra posted this initially: Apparently he added a lot later on based on the reactions he received. Which only confirms that the reactions were correct. It was NOT a hedged scenario at the start. At the start it was straight up 6x cash buying power in the account.
Stop being an asshole. You were the one who said "whos going to pay the $500m loan back if the market goes against him?" I'm telling you that the market would have to go to zero for him to owe $500m. If you wanted to argue about how much he would lose once his $100m of equity was declining, then you should've talked about that. FFS
If you don't want people to call you names, don't set up a scenario where you claim someone can lose $500m, then when someone gives you a logical response, you come back telling them they're wrong because they can never lose $500m. When someone is trying to give you an honest answer, don't act like a jerk.
Your table does not show it but a 83% drawdown will make them lose half a Bil, if we follow your calculations. Citigroup (NYSE:C), to give just one example from the stock market, lost more than that in 2008-2009 (and never recovered since then).
This is where my mind goes to...The Hunt Brothers!! If you are not old enough to know who they are, this is worth a read. https://www.google.com/url?sa=t&rct...brothers.asp&usg=AOvVaw2kqmIuBcSC6yiWErfwtZIz