Ann: December 2018 Quarterly Investment Manager's Report, page-2

Having a read I noticed the short positions in the tech sell off mentioning the Nvidia share price crash.

If anyone missed the stories, it was really interesting. The Bitcoin and other cryptocurrency bubble led to a spike in purchases of graphics cards which are used to mine them. Usually PC gamers were buying individual cards steadily, then suddenly crypto miners were buying them by the shelf. For a while you couldn't find them in stores, some resellers were jacking up the prices for profit rather than mine themselves, and Nvidia were being pressured to set limits on purchases (think purchase limits on baby formula) to keep their priority customer their gamers. Nvidia meanwhile also ramped up production of the cards, and changed their sales forecasts to estimate the wild demand which took the share price with it.

Then all of a sudden demand stopped. 

The crypto bubble was bursting, it was starting to not be cost efficient to mine (cost of hardware and power bills), and the market was now being flooded with cheap used cards just months after those miners and resellers had bought them. 

Nvidia had to release statements that forecasts drastically overestimated what would be the reality and down the shareprice went. 

So to short them from their lofty share price to where it would be after the crash was a great call.