According to @QCompounding, the trader was blamed for the market crash, received death threats, and by 1934 was bankrupt again with assets of $84,000 and debts of $2.5 million, source: @QCompounding. The figures imply negative equity of about $2.416 million and a liability-to-asset ratio near 29.8x, quantifying severe solvency stress relevant to leverage and drawdown control, source: @QCompounding. For trading strategy, this timeline underlines the need for strict position sizing, liquidity buffers, and counterparty-risk checks in volatile markets, including crypto, to avoid forced liquidation when sentiment reverses, source: @QCompounding.

According to H.E. Justin Sun, First Digital Trust (FDT) is currently experiencing negative equity, indicating its total liabilities surpass its aggregate assets, which is a sign of financial insolvency. This situation raises concerns about FDT's compliance with international banking regulations that enforce strict capital adequacy standards for financial institutions. Traders should be cautious as such financial instability could impact FDT's operational capabilities and market trustworthiness.