I can't believe they didn't sell a portion of SPX to avoid this fiaco. I'm sure they said that there was some interest in someone buying a portion.
Why would they preserve 100% of their position only to see the company exploited like this?
I know they mentioned SPX being worth perhaps $200 million in a couple of years ... although I guess that opinion should be taken with at least a grain of salt. Losing a portion of that future worth would have been preferable to wiping people out, no?