1. A rare, massive "Short
Squeeze" event in the financial market that is devastating enough to completely bankrupt large hedge funds negatively affected by it, creating a broader impact across the market where many securities sharply fall in price while others rise dramatically in price.
Coined during the $GME Mother of all
Short Squeezes (MOASS) Saga by retail investors on
Reddit (most notably from r/superstonk).
In a Market Moonsoon, securities that the bankrupted market participants held "
long" positions of are rapidly sold, significantly damaging the price of those securities, while the securities the market participants held "
short" positions of rise significantly as they are forcibly covered after their prime broker takes on and closes the all positions.
Toxic Hedge Funds and Market Makers caused a Market Moonsoon after the fraudulent
trade practice of "
naked shorting" $
GME backfired when retail investors bought and held the stock, causing $GME's price to reach astronomical levels while the price of many other securities held by the toxic market participants crashed while they were forcibly liquidated after being defaulting.