A few questions:

1) If a hedge goes tits up and completely liquidates and vanishes, what happens to it's uncovered short positions? I would assume they would evaporate and the lenders will be left in the lurch. Is that false? What is correct, if so?

2) If the margins are called on a hedge and they cannot be mathematically met, then regardless of force of law, the buy orders will not come in. Is that incorrect?

I'd appreciate being set right before being accused of FUD. I'm curious why people believe there will be a spike to numbers well beyond those that would break the hedge funds. Once the funds are broken, what would drive further price increase?

Doesn't the astronomical rise depend upon the hedges continuing to exist as entities and being compelled to buy buy buy in order to cover? Won't they simply... not cover and die instead?