On November 20, 2025, trading algorithms identified what may become the largest accounting fraud in technology history—not in months or years, but in 18 hours.
Why would nvidia have new money to invest when its stock goes up? That’s not how the stock market works, you buy stock from other investors, not the company. Unless they finance all their investments with debt and use their higher valuation to get easier access to that financing. Which seems unlikely.
Don’t get me wrong, I 100% think AI is a crap bubble, but I don’t think you understood how this scam works.
NVIDIA sells GPUs to Oracle. Oracle sells GPU time to openai.
When time comes to pay the bills, openai doesn’t have the money to pay Oracle who then doesn’t have money to pay NVIDIA. So, Oracle gives stock to NVIDIA, and openai also gives stock to NVIDIA.
NVIDIA doesn’t care if both go broke because now a gpu is worth a lot more, and in the books they’re selling a lot more GPUs each for a lot more money. So NVIDIA stock goes through the roof even if they ran out of cash and got into ridiculous debt.
Shareholders have a ridiculous profit, NVIDIA directors get a massive bonus and NVIDIA CEO gets famous.
Why is it a problem? Because nobody has cash and this can’t go on forever without some massive bankruptcies. I’m sceptical anyone is paying their power bills or servicing bank loans, so these may get dragged into the mud too.
Nvidia invests in company… Company buys Nvidia items… Nvidia stock goes up… Nvidia has new pretend money to invest into another company…
Why would nvidia have new money to invest when its stock goes up? That’s not how the stock market works, you buy stock from other investors, not the company. Unless they finance all their investments with debt and use their higher valuation to get easier access to that financing. Which seems unlikely.
Don’t get me wrong, I 100% think AI is a crap bubble, but I don’t think you understood how this scam works.
NVIDIA sells GPUs to Oracle. Oracle sells GPU time to openai.
When time comes to pay the bills, openai doesn’t have the money to pay Oracle who then doesn’t have money to pay NVIDIA. So, Oracle gives stock to NVIDIA, and openai also gives stock to NVIDIA.
NVIDIA doesn’t care if both go broke because now a gpu is worth a lot more, and in the books they’re selling a lot more GPUs each for a lot more money. So NVIDIA stock goes through the roof even if they ran out of cash and got into ridiculous debt.
Shareholders have a ridiculous profit, NVIDIA directors get a massive bonus and NVIDIA CEO gets famous.
Why is it a problem? Because nobody has cash and this can’t go on forever without some massive bankruptcies. I’m sceptical anyone is paying their power bills or servicing bank loans, so these may get dragged into the mud too.
And this is news to people?
Apparently so.
Question is: which of those is truly the best short play?
Only winning play is to not.