Bill Hwang Seeks Probe of Morgan Stanley in Costly Short Squeeze

Before Bill Hwang sent a slate of stocks on a manic climb last year, he had already started bleeding billions of dollars on a bearish bet after seeking Morgan Stanley’s help.

It’s an untold chapter that played out just before Hwang’s famously bullish trades came tumbling down in early 2021, wiping out his Archegos Capital Management and leading to criminal charges. Months before all of that, Archegos was trying to exit a wager against a Chinese online broker and sought help from Pawan Passi, the Morgan Stanley banker facing close scrutiny in a US probe of whether …