Susquehanna's $70 Million Loss Exposes Market-Maker Risk in Politicized China Stocks

Susquehanna Securities filed suit on June 29, 2026, alleging unnamed traders netted $70 million by betting on Futu and Tiger Brokers put options ahead of China's regulatory crackdown. The scheme's structural lesson: options market-makers price risk using public data; when counterparties hold non-public regulatory intelligence, pricing models collapse. For Susquehanna, the market-maker on the losing side of those trades, that failure cost over $70 million.