Chinese tycoon Xiang Guangda was certain the price of nickel was going to fall. The owner of steel producer Tsingshan Holding Group, who is nicknamed Big Shot, had amassed a large short position on the London Metal Exchange (LME). He had taken out futures contracts that would profit if the
How the nickel short squeeze caught the London Metal Exchange off guard
When the price of nickel suddenly surged 250% in 24 hours in March, the LME faced a dilemma – suspend trading and cancel trades or face the potential failure of the exchange. The fallout from its decision rumbles on.