# ETF arbitrage

How a Reddit-Fuelled Silver Frenzy Became a Mass Liquidation — and a Payday for Banks

A retail‑led mania in silver, fuelled by Reddit and heavy inflows into SLV, sent prices sharply higher before a rapid 40% crash triggered by steep CME margin increases. Forced liquidations and a wide ETF discount handed large arbitrage profits to institutions with access to liquidity and authorised‑participant privileges, leaving many small investors wiped out. The rout highlights structural imbalances between leveraged retail traders and well‑capitalised institutions, and will likely spur regulatory and market‑structure scrutiny.