A Wall Street Genius's Final Investment Playbook-Chapter 188
A week passed.
Ackman experienced an endless hell.
<Wall Street Times: The Shocking Truth of Paladon>
Every day, the headlines were dominated by exposé articles surrounding Valeant’s suspicious partner, "Paladon."
Among them, the insider testimony revealed by an investigative journalist—famous for exposing Theranos—was especially fatal.
"I was ordered to write ‘prescribed as directed’ even without a doctor’s instruction."
"The call center script included lines that pressured us to say ‘Valeant’s medication is absolutely necessary.’"
"They told us to forge patient consent forms. All of it was for submission to regulatory authorities."
Each and every revelation was shocking.
Amid it all, Ha Si-heon continued appearing on broadcasts, fanning the flames.
[It is a serious problem that such unethical practices went undetected by the regulatory authorities.]
His remarks signaled new crises, and before long, articles like these flooded in.
<SEC launches securities fraud investigation into Valeant>
<New York Attorney General: “We will conduct an independent investigation into Paladon.”>
And so, the past week followed this same pattern over and over.
Ha Si-heon’s remarks, followed by a surge of bad news.
To Ackman, the name "Ha Si-heon" had become a harbinger of disaster.
Every time he opened his mouth, Valeant’s stock price plummeted vertically.
53.23……
52.11……
The only reason the stock barely held above the $50 line was one thing.
[We are deeply shocked by this incident as well. We promise to thoroughly investigate the business practices of all our partners going forward…]
It was because Valeant’s CEO strongly denied any connection with Paladon.
However—
"We can't just rely on that! Reduce our stake as much as possible!"
Ackman struggled to reduce his holdings.
"But liquidity is far too low…"
No one wanted to buy Valeant stock, now tainted by bad news.
He barely succeeded in reducing his 13% stake to 11%, but that was the limit.
The problem didn’t end there.
"Another margin call. This time, where…"
Every time Ha Si-heon appeared, debt collectors came flooding in.
"We’ve already reduced all positions to their limits. At this point, you should liquidate Herbalife…"
"You think I haven’t thought of that?!"
Ackman’s voice was laced with sharpness.
To liquidate his short position in Herbalife, he would need to repurchase and return the 26 million shares he had borrowed.
But the problem was—the market had already caught wind of Ackman’s move.
Herbalife’s stock price surged on expectations of his short-covering.
It skyrocketed from $135 to $250, and the loss, which had been $2.5 billion just last week, had now ballooned to $4.6 billion.
"If we leave it like this, the loss will only grow."
"That’s why I’m negotiating with the major shareholders!"
If he bought shares in large volumes on the market, the price would inevitably soar.
So Ackman began quietly negotiating with the major shareholders to slowly gather shares, but he only managed to get 3 million.
23 million shares remained.
The road ahead was still long and rough.
"Maybe try contacting Ha Si-heon or Icahn as well…"
"…"
His face twisted at the mere mention of that name, but the PM wasn’t wrong.
Those two were major shareholders in Herbalife.
Ha Si-heon held 5%, and Icahn held 19%.
If he could negotiate with them, a breakthrough might emerge.
But at this moment, just thinking of Ha Si-heon made Ackman feel sick to his stomach.
So he first called Icahn.
Despite all their past quarrels and enmity, he felt that Icahn was the easier one to deal with now.
[Hahaha! So you finally came crawling back like a dog?]
As expected, Icahn mocked him the moment he picked up.
But after enduring the mockery for a few minutes, Icahn surprisingly agreed to negotiate.
Of course, it didn’t come for free.
[Create an ‘Icahn Scholarship’ in your foundation. The amount—9 million dollars.]
Ackman was speechless for a moment.
Putting Icahn’s name on the Ackman Foundation, something he took such pride in…
On top of that, the 9 million dollars was the very money Ackman had once won from Icahn in a lawsuit.
[Then I’ll hand over 5% of my shares. But at $650 per share.]
"$250 stock for $650? You thief…"
[You’ll pay more than that on the market. This is my gesture of reconciliation.]
Though humiliation gripped his throat, Ackman agreed to the deal.
He had no other choice.
[No thank-you?]
"…Thank you."
This kind of humiliation—he could endure.
As long as he could survive.
His pride lay in tatters, but securing 9 million shares from Icahn gave him a bit of breathing room.
Now 14 million shares remained.
The PM quietly said,
"Ha Si-heon too…"
"I know!"
Even the thought of it turned his stomach, but Ackman called Ha Si-heon as well.
However, Ha Si-heon was not like Icahn.
[I’m truly at a loss receiving such a call. Do you know how many individual investors trusted me and invested? How could I betray them and secretly sell my shares for a backroom deal?]
Unlike Icahn, he firmly refused to hand over his shares.
However, Ha Si-heon didn’t stop there—he openly appeared on broadcasts and revealed the entire situation.
“Recently, Mr. Ackman approached me. Of course, I have no intention of selling my Herbalife shares until he liquidates.”
The result was devastating.
Rumors that “Ackman is desperate to liquidate Herbalife” began to spread, and the already skyrocketing stock soared even higher.
401.23……
412.69……
“You son of a bitch!”
At this point, Ackman couldn’t help but curse every time he saw Ha Si-heon.
Still, Ackman barely held onto his reason, grinding his teeth and biting his nails.
“There’s still a way…”
He considered negotiating with mutual funds or proving Valeant’s innocence.
Whatever it was, he hadn’t lost all his cards just yet.
Ackman was a born warrior.
The more pressure came at him from all directions, the harder he fought back, desperately trying to find a breakthrough.
But then—
Ha Si-heon’s voice echoed from the screen once again.
“This time, we’ve discovered something new about Valeant.” freeweɓnovel-cøm
Ackman groaned under his breath.
“What now, this bastard…”
However, this exposé was on a whole new level.
“We’ve obtained a contract that proves Paladon is essentially a subsidiary of Valeant. They signed an option agreement with Paladon… which states that they purchased the right to acquire the company at zero dollars within ten years—for $100 million.”
“…What? Acquire at zero dollars? What does that even mean?”
“They effectively own it, but since no money actually changed hands, there was no legal obligation to report it as a subsidiary. That’s how they deceived both shareholders and the SEC.”
Ackman’s face twisted, then gradually went blank.
“That can’t be… That’s absurd…”
So, everyone had been fooled by Valeant.
They were, in fact, a fraudulent company—and Ackman had failed to see it.
A zero-dollar option contract.
In the face of such a ridiculous revelation, Ackman’s proud, meticulous analysis was rendered completely useless.
Still, he couldn’t help but feel wronged.
Unless you were a party to the contract, how could you possibly know about such a secret arrangement?
If anything, the strange one here was Ha Si-heon for even discovering it.
Such an unusual option contract couldn’t be found without knowing exactly what to look for…
“What the hell… How…”
His strength drained.
From his body to his mind, everything felt paralyzed.
The only reason Valeant’s stock had barely managed to hold the $50 line—
Was because of their claim that they had no direct ties to Paladon.
But this exposé shattered that final hope.
“The stock price?”
Valeant went into free fall.
By the time the market closed that day, it had plummeted to $18.
Ackman stared blankly at the screen with lifeless eyes.
There was nothing more he could do.
And finally, after the market closed—
The PM spoke in a heavy voice.
“Sir, we can’t go on like this…”
Ackman shut his eyes tightly.
There was no avoiding it now.
“Do it.”
It was time to liquidate Herbalife.
***
Meanwhile, WSB was in full celebration mode.
As the Valeant scandal broke, mocking posts about Ackman’s downfall exploded online.
—Does Ackman still hold 13% of that Valeant garbage? Lol
—13% stake × stock crash = $5.2 billion loss. He’s done lol
—Still holding a Herbalife short too. Taking hits from both sides. RIP Ackman.
—I’m thinking of sending Ackman a box of Herbalife protein shakes. Who’s in?
As speculation about his next move spread, the hype grew even more.
—It’s squeeze time lol. Everyone take your positions!
—Today or tomorrow. It’s about to blow!
After Ha Si-heon revealed, “Ackman called me,” Herbalife’s stock shot up to $500.
Everyone was holding their breath for one thing.
Ackman’s short position liquidation—aka the short squeeze.
The market was taut with tension, like a bowstring pulled tight.
All eyes were glued to the price chart.
And then, on a quiet morning—
10:15 a.m.
500.13……
520.76……
530.80……
Herbalife stock suddenly exploded.
In a single move, the trading volume surpassed 3 million shares.
And in less than a minute, the price soared past $550.
—It’s here!
—Who hit the launch button lol rocket has launched!
This wasn’t just regular buying.
It was a panicked buying spree, as if someone was being chased.
The forced liquidation of a short position had begun.
The stock price leapt in $20 increments.
And finally—
Trading Halted: HL, Circuit Breaker Level 2 Activated
Trading stopped.
WSB erupted in cheers.
—It’s Ackman lol look at the tape: massive block buys + buying with no concern for price
—My wife’s boyfriend just fainted lol
—No selling! Hold the line! This is where it begins!
Retail investors held 90% of the float.
As long as they didn’t sell, the stock would keep rising.
Everyone had waited for this very moment.
The halt would last 15 minutes.
Tension peaked.
Retail investors held their breath, waiting for trading to resume.
And when it did—
630.12……
631.34……
The stock instantly soared past $630.
And before lunchtime, it finally broke through $700.
Multiple trading halts occurred in the process, but WSB’s excitement never waned.
—[Guide for Newbies] What it means when Circuit Breaker Level 2 is triggered multiple times:
1. Big whales are desperately buying.
2. You can’t get your hands on shares.
3. The price is going to keep going up.
—No selling, no mercy. Hold the line!
—Ackman is completely trapped lol infinite squeeze incoming!!!
But the market never moves in just one direction.
700.12……
692.34……
690.19……
The soaring stock suddenly slipped.
Institutions had started cashing in profits, triggering a downward trend.
Still, retail voices only grew louder.
—Fake dump. It’s a trick to scare retail—don’t sell like an idiot.
—Ackman’s hedge fund buddies are throwing block trades to shake out retail holders.
—We all know this is Wall Street collusion. Don’t get shaken. Diamond hands only!
—Remember what those bastards did to us.
—We’re here for revenge.
—Volkswagen dropped 40% and still exploded—hold strong.
They vowed not to sell, and with that united strength, they weathered the dip.
And then came an explosive rebound.
750.29……
792.45……
The stock broke through $750 and, in less than an hour, reached $800.
Of course, the path wasn’t smooth.
The rally steepened, and reversals became quicker.
By 2 p.m., the stock broke through $900, reaching the peak of frenzy.
***
Ackman Squeeze: $900+ God Mode Activated!
—$1,000 isn’t a meme anymore. Next stop: Uranus!
—Ackman’s tears are our rocket fuel!
—Repeat after me: $1,000 is the floor! Sell below that and you’re paper hands!
—[A guide for the paper hands]
1. “I already made x% profit, should I sell?” → What if we push Ackman’s loss to infinite%?
2. “What if it drops?” What if it goes to $2,000?
3. “Shouldn’t I take profits now?” Profits are temporary, glory is forever.
The forum was bursting with celebratory cheers.
3:30 p.m.
Herbalife hit $980, reaching its final crescendo just before the market closed.
The final trading halt was triggered at $1,020.
After the halt was lifted, the stock blasted to $1,053 in an instant, ending the day.
It was a miraculous moment—breaking the $1,000 mark that retail investors had chanted for—within a single day.
WSB was filled with euphoria.
—Today we witnessed the greatest short squeeze of all time. A living legend.
—This is textbook-level lol. Biggest one-day gain, billionaire collapse, WSB’s historic victory.
—WSB museum exhibits: today’s chart, Ackman’s short position records, circuit breaker logs, WSB memes.
—Pity the Maverick intern who has to explain WSB memes to Ackman lol.
Soon, retail traders who had sold at $1,000 began posting profit confirmations.
—Position closed: $28K. The money’s great, but the thrill of screwing over a billionaire is priceless.
—Kept one share as a souvenir. It’s a trophy lol.
—Those still holding: the buy pressure is insane, there’s still room to climb.
—Those who sold: congrats, you helped bankrupt a Wall Street villain.
—Everyone won. Win-win!
—Revolution successful! Now the retail investors call the shots! Glory to Saint Sean!
Soon, the forum was filled with praise for the one who made it all possible—Ha Si-heon.
—Let’s compile Ha Si-heon’s exposé files and make them required reading on WSB.
—Yep, the Prophet’s Scrolls deserve a permanent spot in the Hall of Fame lol.
—That one exposé from Sean created more millionaires than Harvard Business School lol.
—Saint Sean beheld Ackman’s short position and saw it was a lie: The Book of Value, 4:20.
Then suddenly, someone posed a question.
—But how much did Saint Sean make? I just want to know how many commas are in that number lol.
People quickly began crunching numbers.
—[Prophecy fulfilled: calculating the miracle…] Valeant shorted at 135, now at 18… Herbalife entered at 45, sold at 1,000…
—??? VX 1B, HL 4.5B? My calculator exploded lol.
—As expected of Saint Sean! Let’s declare his trade profits an official WSB relic. File a petition.
The numbers alone were enough to make one dizzy.
With just one war, Ha Si-heon had secured an unbelievable war prize.
However—
The retail traders’ calculations were not accurate.
Their numbers were conservative—they didn’t account for options.
Updat𝓮d from freew𝒆bnov𝒆l.co(m)
