The Amaranth Trade - How to lose $5 Billion in 1 week

We were doing a little research this morning to see if the nati gas or even crude oil market may have gotten a little out of whack due to Amaranth. From what we've heard, Brian Hunter was long March '07 Gas, and short April '07 Gas creating a time spread. The position was entered @ 2.14 and finally closed @ .75



Here's what the spread looked like in '05 just for comparison: