Chinese investors who allegedly lost $2.6 million in forex trading have occupied the Shanghai office of Australian forex brokerage Union Standard Group Forex (USGFX) and are holding several staff members hostage.
Last Wednesday up to 50 investors went into the company office demanding their money back. Initially the angry clients, who reportedly are unarmed, took hostage 20 employees of USGFX, but eventually released the majority. Three USGFX staff members, however, were still being held hostage.

Pursuing "get-rich-fast schemes" - not surprising at all with final result

That sounds terrifying why they will take hostage employees. They have to find the owner the main brain behind this scheme and take legal actions not affecting the regular workers lives

All is well when it ends well, at least for the hostages. The upset Chinese investors who have been holding hostage three employees of the Australian forex broker Union Standard Group Forex (USGFX) since 19th July have released them after several negotiation attempts.

"Don't blame the market for your losses." they said and the Chinese group looked who is next in line. Why they didn't blamed the third-party agent? I guess, it was a Chinese, and only longnoses (鬼佬) can be bad. I don't know whether it really was that but this sounds like a typical case of a social trading fail I also experienced a couple of times active and passive when I was a total beginner and thought zulutrade can help me get back the money I lost by manual trading. At first yes, and there were and are really good traders. Their followers got greedy with the time and when the followed money of a traders account exceeded a certain amount of money (2-4million $) strange things happened - the "strategy" was changed and the whole trader account was crashed very soon. As said, this happened not once or twice, it happened all the time. The Top 3 traders crashed all their accounts (some were only demo, but the followed money was not) a few weeks later and I saw many Top 3 traders back then. Whatever was the reason, the big money watches those sites having an easy carnage.

Don't get me wrong, the idea of social trading is good and you can see what is possible. One trader become my secret idol. His hit rate was 96% and average pips were 50-60pips with one or two trades a day. All went good over a month (I followed no trader anymore this time) and then the SNB-Bomb killed his real account - a one-hitter. He recovered quite quickly but the other traders lost all confidence in him and he stopped sending signals. This was the only honest top trader I met there and he has all my respect.

Two years later a guy from Ayondo ask me to register on the site he worked for (I guess, he doesn't work for them anymore) and I let him talk. Inward I facepalmed all the time he spoke. This was bad and a bit obscure, nothing one would miss when the delete their site.

“Apparently the traders in question were heavily shorting the AUD/USD above 0.7600 and continued adding multiple short positions until their accounts were exhausted”
It looks quite good that the market had could turned at this point for a nice retracement, but it didn't and more and more time went by and after the market reached 0.7650 they had to rethink their positions. What the Chinese group hopefully learned: Rule #1 - Never trust someone else. Trade what you see with your own eyes.
and Rule #73 for Chinese: Not all longnoses are bad and not all Chinese are good

Money is serious business and it brings out the worst in people unfortunately

Apparently they were copying trades from a signal provider and this was his chart setup

Jimmy wrote: Thu Aug 03, 2017 7:30 pm Apparently they were copying trades from a signal provider and this was his chart setup

That's the problem when you follow the signals of a foreign trader on this sites. Either you don't see the system and must follow blindly or you see a strategy that looks nice for a noob but has many weak points. In every case losses look badly in the account history and so the stops are often too far away hoping the market will come back. Often, once in a loosing position more positions were opened and when you don't limit the open positions the greedier followers get their margin calls very quick and that's it. Another problem is that often too many pairs are traded from the same signal trader. The best ones only trade one or maximum two pairs.

Here I guess, the signaler high rolled and Sold into the possible Triple Top in a diverging triangle, what is dangerous when your oscis and deviation band tell you that the market is overbought but the market just winds back silently for breaking the Resistance and going into a trend. A Hound of Baskerville.