Wayne:

That was my guess. My question would be what happens when you can't fund the account. I mean, with the amount of leverage we are talking here, it isn't out of the realm of possibility to think that some traders are judgment proof so to speak when they blow up an account.

If you are short right now, you can't cover. There isn't an offer. And I read about some places offering $500 to $1000 intraday margin. I could imagine that quite a few traders got smoked here.