There have been rumors flying around for the past week that John Paulson is being liquidated. One of his last remaining positions that was performing, GLD, is now crashing. If Paulson has not been liquidating than it is likely that he will be soon. Nearly every one of his largest positions has blown up.
John Paulson was an arb who found the greatest trade ever. To be more precise, one of his employees who is no longer with the firm found it. He had no experience as a fundamental investor and has blown up in spectacular fashion. I believe it will be a relief to the market when it is announced that he is done liquidating as it is a fait accompli.