Usagi: falsifying NAVs, manipulating share prices and misleading investors.

[Bitcoin Oz]

mIRC isn't SOFTWARE it is a client interface for the IRC service, so obviously we can't trust your opinions about anything you have ever said. Obviously your memory is as faulty as your logic. mIRC has never ever ever had default logging turned on.

Yes, mIRC is software:

http://oxforddictionaries.com/definition/english/software?q=software

Definition of software
noun
[mass noun]
the programs and other operating information used by a computer

http://mirc.en.softonic.com/

Windows > Communication software > IRC > mIRC

Laws concerning the use of this software vary from country to country. We do not encourage or condone the use of this program if it is in violation of these laws.

Provide links to this 'verification' or GTFO with all your FUD.

Google search is your friend, ask it.

Other than misrepresenting the past and many different software programs by making an ass out of u and me

You affirmed that 'mIRC isn't SOFTWARE'. So, how could I misinterpret 'the past and many different software programs by making an ass out of u and me'?. You are contradicting your initial premise.

Way to say that you were right in the middle of saying you were wrong.

I have already recognized my mistake.

Do you often wander into threads and randomly dox strangers for no reason ?

[imsaguy]

It is a little funny though, the last person to make claims that the moderators shouldn't post their opinions was Imsaguy, who was defending Pirateat40. About a month before Pirate defaulted.  

Not quite.  I wanted better clarification between "I'm posting as a user" and "I'm posting as a moderator".

[usagi]

False? Where is it false. One of the steps of fraud is a false statement.

Yes, false accusation.

Second step if there any motive: usagi did it for profit.
Third step if there are any victims: there are.
Fourth step if there any cover up: usagi tried to wipe all of his statements.

There was no motive. There was no victim. There was no cover up.

You accusation is false.

You see - I am right and you're wrong. Get lost.

You are delusional.

Does ANYONE have ANY evidence WHATSOEVER regarding "falsifying NAVs, manipulating share prices and  misleading investors."?

Can a moderator please issue a statement in this thread and close it? Thank you.

[usagi]

Does ANYONE have ANY evidence WHATSOEVER regarding "falsifying NAVs, manipulating share prices and  misleading investors."?

Can a moderator please issue a statement in this thread and close it? Thank you.

Additionally if there are any victims at all -- even one -- of this alleged "scam" PLEASE COME FORWARD.

The fact that not a single victim has ever come forward in over 4 months of this crap is very telling. This needs a final statement and I need to be cleared of this accusation.

[Zeeks]

You're the one who keeps dragging this thread back up...

[usagi]

You're the one who keeps dragging this thread back up...

I can't list on Bitfunder or BTCT.CO because everyone thinks I am a a scammer. I don't get it. Ian bankwell rips me off for 4 btc and he gets to list on BTC.TO. I post a contract similar in every respect to BTC-GOLD and instead of 8-0 it gets 0-8. Yeah guys I get it.

Well I can't deal. The community has voted. I'm a fucking scammer. I have absolutely no idea what I am going to do. Please. Help me. I am begging.

[Deprived]

You're the one who keeps dragging this thread back up...

I can't list on Bitfunder or BTCT.CO because everyone thinks I am a a scammer. I don't get it. Ian bankwell rips me off for 4 btc and he gets to list on BTC.TO. I post a contract similar in every respect to BTC-GOLD and instead of 8-0 it gets 0-8. Yeah guys I get it.

Well I can't deal. The community has voted. I'm a fucking scammer. I have absolutely no idea what I am going to do. Please. Help me. I am begging.

Just let this thread die.  There's NO way moderators could ever state "usagi isn't a scammer", same as they couldn't state "Deprived isn't a scammer" - as it's impossible for them ever to be certain of that.  And there's equally no way they're going to bother reading the whole thread which largely relates to things you've deleted anyway.

If you're closing your companies down and returning funds to investors then I've zero interest in prolonging this thread's life.  Yeah -I could waste my time explaining yet again what I assert you did wrong, but to what end?  Mods aren't going to wade through this thread and give a ruling - and if you aren't asking for any more investments then I don't care whether you get a tag or not.  Do recall that the only reason I posted in this thread in the first place was because you refused to address issues in your own threads and told me to come and post in this thread.

If you want to change people's views on you then you'll achieve far more by focussing efforts on closing your companies down in a timely, transparent and fair manner than by expending energy posting here.

Then when that's done come and bump this thread again and maybe it'll change people's views about you a bit.

[Zeeks]

My suggestion is to stop popping back on here with new businesses/investments/whatever and finish the liquidation process of your old stuff first, especially STOP posting brand new threads all over the place and DEFINITELY STOP deleting your posts because that will make people recoil away from you. You need a clean slate, starting something new is absolutely the wrong way to go about it. Apply your apparently considerable drive to getting that done first. If people won't let you list an asset somewhere to assist you in becoming level with your past dealings then work around it, you seem to have the energy but are applying it toward new ventures when you need to wait on that.

[BitcoinMint.US]

My suggestion is to stop popping back on here with new businesses/investments/whatever and finish the liquidation process of your old stuff first

I agree.  It seems fairly obvious to me at least, that usagi is running ponzi after ponzi and only profiting from selling shares and then buying them back dirt cheap after he mismanages the asset.  He's taking a play out of Goat's playbook.  Now that GLBSE is gone, he can't buy back his shares for nothing, so he has to raise more funds to try and save his reputation by paying out whatever fake value he has assigned to his shareholders.  Expect more and more investment opportunities coming from him until he's labeled a scammer, or the exchanges stop listing his ponzi schemes.  Beware.  I would also recommend taking a long look at any exchange willing to list his assets.  It is obvious at this point what he is doing and any exchange that would assist him is begging to be shut down the same way GLBSE was.

[Deprived]

My suggestion is to stop popping back on here with new businesses/investments/whatever and finish the liquidation process of your old stuff first

I agree.  It seems fairly obvious to me at least, that usagi is running ponzi after ponzi and only profiting from selling shares and then buying them back dirt cheap after he mismanages the asset.  He's taking a play out of Goat's playbook.  Now that GLBSE is gone, he can't buy back his shares for nothing, so he has to raise more funds to try and save his reputation by paying out whatever fake value he has assigned to his shareholders.  Expect more and more investment opportunities coming from him until he's labeled a scammer, or the exchanges stop listing his ponzi schemes.  Beware.  I would also recommend taking a long look at any exchange willing to list his assets.  It is obvious at this point what he is doing and any exchange that would assist him is begging to be shut down the same way GLBSE was.

I don't think that's what he's doing at all - and I've been one of the most vocal critics of usagi.  I think he set out with good intentions then made some bad decisions when times got tough - and the deceptions came from trying to pretend things were alright rather than facing up to the fact they'd gone wrong (or the extent to which they'd gone wrong).  To be totally clear, I could lend BTC to usagi and not lose sleep worrying whether I'd get it back - but I'd suffer insomnia if I gave usagi funds to invest/manage on my behalf.

Pretty sure BMF will get listed on BTC.CO to make closing down easier.  Even those of us who have a record of ciriticisng usagi shouldn't be trying to thwart that - returning funds/assets held by usagi to his investors is a good thing which I totally support and would hope everyone else does too.  Listing new assets before the old ones have closed down is obviously a different issue - there the past questions over segregation of funds / conflict of interest raise their ugly heads.

[usagi]

My suggestion is to stop popping back on here with new businesses/investments/whatever and finish the liquidation process of your old stuff first

I agree.  It seems fairly obvious to me at least, that usagi is running ponzi after ponzi and only profiting from selling shares and then buying them back dirt cheap after he mismanages the asset.  He's taking a play out of Goat's playbook.  Now that GLBSE is gone, he can't buy back his shares for nothing, so he has to raise more funds to try and save his reputation by paying out whatever fake value he has assigned to his shareholders.  Expect more and more investment opportunities coming from him until he's labeled a scammer, or the exchanges stop listing his ponzi schemes.  Beware.  I would also recommend taking a long look at any exchange willing to list his assets.  It is obvious at this point what he is doing and any exchange that would assist him is begging to be shut down the same way GLBSE was.

The only way to prove I am not doing this is to dump the list of shareholder assets and/or CSV files.

So in other words you have created, with no evidence against me, a situation where I am either a scammer or a scammer.

There's no way out for me.  Is that what U want? For me to do something stupid like post the 100s of shareholder e-mails I was given to Nefario? It's the ONLY way to show what you just said is wrong. Even after I pay out (like I have already paid out over 2,000 bitcoins) people will say I am a scammer. The scammer without a tag.

[repentance]

usagi, please stop feeding the drama.  You're saying how tired you are but you've wasted a ridiculous amount of energy in pointless arguments on here which could have been better spent on finding ways to close out your previous ventures.  You need to disengage your emotions and your ego from all of this and focus on the practical. 

What's done is done.  It doesn't matter why you made the decisions you did in the past - you did and they can't be changed.  Stop wasting energy on defending them because it achieves absolutely nothing except exhausting and overwhelming you.

You need to think about whether you can close out your previous ventures without posting here or you're just going to waste even more energy on pointless shitfights and it's not going to benefit your shareholders one bit.

[usagi]

usagi, please stop feeding the drama.

Then why did you cause it? You took potshots against me for months, despite nothing ever coming of the scam accusation threads. You sit there and tell me to stop feeding the drama but it's your drama, you made it.

[repentance]

usagi, please stop feeding the drama.

Then why did you cause it? You took potshots against me for months, despite nothing ever coming of the scam accusation threads. You sit there and tell me to stop feeding the drama but it's your drama, you made it.

No, you made the drama by deleting thousands of posts, by coming back here telling everyone how many hours you'd put into your Japanese language venture when you hadn't even sorted out the post GLBSE clusterfuck and now by trying to open a new listing which basically involves trying to sell people shares in stuff you already own.  Your internet history shows one drama after another going back years, and they all have a similar pattern.

No-one's ever going to convince you that you've done anything wrong with any of your ventures because you're so fucking delusional that you refuse to accept that the great usagi can ever be wrong.  You say that you invested with the PPTs because no-one trusted you, but apparently you refuse to look at why that was the case.  And when you pull the "other people did too" bullshit, you sound like BFL.  That others may have made the same wrong judgements you made doesn't make you less responsible for yours.  

If you want to play fund manager, you don't get to blame it on someone else when your judgement proves flawed.  It was foreseeable that pirate's ponzi would collapse and take the PPT operators down and it's ridiculous to claim that it wasn't.  If anything, you need to explain why you turned to them in spite of that knowledge and the best you've come up with so far is that people didn't trust you so you decided to try to give yourself credibility by association.

It doesn't matter whether you're an intentional scammer or not.  You're unstable as shit and your own actions have utterly destroyed any chance you had at redeeming yourself.  You need to wrap this up and move on to your next obsession.

Take it to IRC or email or reddit.  You're incapable of not being a drama queen here.  And I am sorry about your health problems but perhaps you should be sort those out first before trying to take on business ventures which are going to be inherently stressful even if successful, never mind if they fail (and failure is always a risk in business, and an especially high one in the kinds of Bitcoin enterprises you chose to launch).

[usagi]

usagi, please stop feeding the drama.

Then why did you cause it? You took potshots against me for months, despite nothing ever coming of the scam accusation threads. You sit there and tell me to stop feeding the drama but it's your drama, you made it.

No, you made the drama by deleting thousands of posts,

after 2 months of solid trolling I think I just wanted to delete the posts I had made because I had become sickened by it.

by coming back here telling everyone how many hours you'd put into your Japanese language venture when you hadn't even sorted out the post GLBSE clusterfuck

I did not get complete and accurate shareholder lists until december 21st. What did you expect me to do, sit on my ass and make up shareholders to pay out? Did you see the crap I had to go thru when people thought I might be paying out some shareholders before others? And now, you say I should have done that earlier? How can you say that's my fault now, and my fault then? It doesn't make sense. YOU don't make sense.

and now by trying to open a new listing which basically involves trying to sell people shares in stuff you already own.

Just like every other precious metals fund? Yea. So?

Your internet history shows one drama after another going back years, and they all have a similar pattern.

Yeah, some stupid fool like you blows a lot of hot air. Thanks repentance.

No-one's ever going to convince you that you've done anything wrong with any of your ventures because you're so fucking delusional that you refuse to accept that the great usagi can ever be wrong.  You say that you invested with the PPTs because no-one trusted you, but apparently you refuse to look at why that was the case.

No, I did not say that, I said I invested with deposit holders. All of which swore up and down my investment was guaranteed and NOT in pirate. You're lying about me again.

If you want to play fund manager, you don't get to blame it on someone else when your judgement proves flawed.  It was foreseeable that pirate's ponzi would collapse and take the PPT operators down and it's ridiculous to claim that it wasn't.

You don't seem to remember that I had taken the advice of my round table members and cut our pirate exposure by thousands of bitcoins. A lot of people were pissed because they had 2000+ coin contracts with us and we got out of the contracts. Legally, according to the contract. The only contract we had remaining was kakosan's and we paid out the full 1100 bitcoins on it IIRC. We made almost that much anyway. The real issue is what happened with other pepole. I did what I was supposed to do. But I got blamed for other people screwing us over.

If anything, you need to explain why you turned to them in spite of that knowledge and the best you've come up with so far is that people didn't trust you so you decided to try to give yourself credibility by association.

"In spite of that knowledge". You really make me sad. You're either stupid -- really stupid, and can't read, or you really just don't have a clue. And in either case why on earth are you even posting this? Nobody knew that Imsaguy was not going to be able to pay back. Saying I knew -- wow that's really a new level.

It doesn't matter whether you're an intentional scammer or not.  You're unstable as shit and your own actions have utterly destroyed any chance you had at redeeming yourself.  You need to wrap this up and move on to your next obsession.

Take it to IRC or email or reddit.  You're incapable of not being a drama queen here.  And I am sorry about your health problems but perhaps you should be sort those out first before trying to take on business ventures which are going to be inherently stressful even if successful, never mind if they fail (and failure is always a risk in business, and an especially high one in the kinds of Bitcoin enterprises you chose to launch).

I didn't fail. GLBSE failed. And you failed to understand simple logic like no one could have predicted PH, HK, etc. five months before it happened. And the community failed me when I tried to relist to process claims. But you are wrong, I did not fail, and I won't. Unstable, yes, that's what happens when you have to put up with months and months of lies like the crap you just posted when you said "in spite of that knowledge".

[makomk]

I didn't fail. GLBSE failed.

That makes for a convenient excuse now, but unfortunately you and everything you operated had both well and truly failed way before the GLBSE shutdown. You'd already significantly overstated the value of the assets your securities held, and were in the process of screwing over NYAN investors through a bizarre shutdown scheme for NYAN.B that broke your contractual obligations and screwed over investors in all the NYANs except possibly NYAN.C.

[usagi]

I didn't fail. GLBSE failed.

That makes for a convenient excuse now, but unfortunately you and everything you operated had both well and truly failed way before the GLBSE shutdown. You'd already significantly overstated the value of the assets your securities held, and were in the process of screwing over NYAN investors through a bizarre shutdown scheme for NYAN.B that broke your contractual obligations and screwed over investors in all the NYANs except possibly NYAN.C.

A convenient excuse for what? You seem to be under the impression that a) I invested in stuff that the contract said I wouldn't invest in, or b) invetors were not fully informed of what was in the contracts.

If that isn't what you're saying then spit it out. I only did what was in the contracts and everyone knew what I was doing. It was only after the fact when GLBSE started crashing that people attacked me, saying I knew all along, and other impossible to believe garbage.

Like you for example --> I loved how you called the NYAN shutdown "scheme" bizzare. You mean like when I bought back 1100 bitcoins of NYAN.A and NYAN.B on the open market in about a week, with 400-500 bought back the following week? Oh that's so bizzare. Oh and the shareholder motions that allowed me to do it. SO, SO bizzare, huh.

I also loved how people were saying it made a lot of sense since it would help out the NYAN.C shareholders as NYAN.B would not take up the extra dividend flow from NYAN.A. And how there were no victims because NYAN.B holders could still get 1 bitcoin per share. And thousands of shares were bought back in that manner. I did good. But now, you want to be an asshole, so you call it "bizzare". Get something straight, YOU are bizzare.

I think I get it now. People like you, who don't understand anything about investing or finance are looking for a pinata to beat up. Who knows maybe some candy will fall out. It doesn't matter that i'm not responsible for your loss, I'm just a convenient scapegoat. All I did was invest in companies on behalf of investors. I invested in a WIDE RANGE of securities according to the contracts. If you can't point out where I violated my contract for NYAN in particular, or if you cannot point out that I knew mining would crash (for example) then you CANNOT logically say I am responsible for what happened.

95% of commodity futures investors lose all their money in the first 6 months (http://www.financialsense.com/financial-sense-newshour/2012/12/15/opposing-forces-monetary-vs-fiscal-policy). Did you know that? When you invest in bitcoins you acquire commodity risk due to the pricing of bitcoins in US dollars. Not to mention a secondary commodity risk in the value of the hardware. If you do not understand what you are doing when you invest in mining and you lose your money IT IS ENTIRELY **YOUR** FAULT. I very, very publicly disclosed what I was doing, what I was investing in, etc. and NO ONE was lied to as to what we held. I was VERY CLEAR on the risks as well. The contracts are VERY CLEAR and were VERY PUBLIC. There is no way you can say that I am responsible for someone losing their money in a SECTOR FUND.

There is no excuse for blaming me for what happened. I know it makes you feel good to beat someone up over your loss but it's just not my fault.

[EskimoBob]

I didn't fail. GLBSE failed.

That makes for a convenient excuse now, but unfortunately you and everything you operated had both well and truly failed way before the GLBSE shutdown. You'd already significantly overstated the value of the assets your securities held, and were in the process of screwing over NYAN investors through a bizarre shutdown scheme for NYAN.B that broke your contractual obligations and screwed over investors in all the NYANs except possibly NYAN.C.

A convenient excuse for what? You seem to be under the impression that a) I invested in stuff that the contract said I wouldn't invest in, or b) invetors were not fully informed of what was in the contracts.

If that isn't what you're saying then spit it out. I only did what was in the contracts and everyone knew what I was doing. It was only after the fact when GLBSE started crashing that people attacked me, saying I knew all along, and other impossible to believe garbage.

Like you for example --> I loved how you called the NYAN shutdown "scheme" bizzare. You mean like when I bought back 1100 bitcoins of NYAN.A and NYAN.B on the open market in about a week, with 400-500 bought back the following week? Oh that's so bizzare. Oh and the shareholder motions that allowed me to do it. SO, SO bizzare, huh.

I also loved how people were saying it made a lot of sense since it would help out the NYAN.C shareholders as NYAN.B would not take up the extra dividend flow from NYAN.A. And how there were no victims because NYAN.B holders could still get 1 bitcoin per share. And thousands of shares were bought back in that manner. I did good. But now, you want to be an asshole, so you call it "bizzare". Get something straight, YOU are bizzare.

I think I get it now. People like you, who don't understand anything about investing or finance are looking for a pinata to beat up. Who knows maybe some candy will fall out. It doesn't matter that i'm not responsible for your loss, I'm just a convenient scapegoat. All I did was invest in companies on behalf of investors. I invested in a WIDE RANGE of securities according to the contracts. If you can't point out where I violated my contract for NYAN in particular, or if you cannot point out that I knew mining would crash (for example) then you CANNOT logically say I am responsible for what happened.

95% of commodity futures investors lose all their money in the first 6 months (http://www.financialsense.com/financial-sense-newshour/2012/12/15/opposing-forces-monetary-vs-fiscal-policy). Did you know that? When you invest in bitcoins you acquire commodity risk due to the pricing of bitcoins in US dollars. Not to mention a secondary commodity risk in the value of the hardware. If you do not understand what you are doing when you invest in mining and you lose your money IT IS ENTIRELY **YOUR** FAULT. I very, very publicly disclosed what I was doing, what I was investing in, etc. and NO ONE was lied to as to what we held. I was VERY CLEAR on the risks as well. The contracts are VERY CLEAR and were VERY PUBLIC. There is no way you can say that I am responsible for someone losing their money in a SECTOR FUND.

There is no excuse for blaming me for what happened. I know it makes you feel good to beat someone up over your loss but it's just not my fault.

WOW!
I am preserving this for the future generations

[makomk]

Like you for example --> I loved how you called the NYAN shutdown "scheme" bizzare. You mean like when I bought back 1100 bitcoins of NYAN.A and NYAN.B on the open market in about a week, with 400-500 bought back the following week? Oh that's so bizzare. Oh and the shareholder motions that allowed me to do it. SO, SO bizzare, huh.

Not all that bizarre. You bought them back for way less than the nominal 1 BTC face value they should've had, which also meant you were paying way less than you claimed the underlying assets were worth. Basically, you drove shareholder value into the ground through mismanagement and then picked up the wrecked shares on the cheap.

I also loved how people were saying it made a lot of sense since it would help out the NYAN.C shareholders as NYAN.B would not take up the extra dividend flow from NYAN.A. And how there were no victims because NYAN.B holders could still get 1 bitcoin per share. And thousands of shares were bought back in that manner. I did good. But now, you want to be an asshole, so you call it "bizzare". Get something straight, YOU are bizzare.

Can anyone here make sense of how the hell usagi is claiming this would've worked? For that matter, usagi, can you point to anyone other than yourself who claimed your scheme made sense? I mean, yes, it would mean that NYAN.C would get the dividend overspill from NYAN.A, but if I'm remembering your baroque structure correctly the only way this would benefit NYAN.C is if the shares being given to NYAN.B holders couldn't pull their weight dividend-wise. Which basically confirms that the GLBSE market was right to value the underlying shares at a lot less than the 1 BTC per NYAN.B share you valued them at.

Meanwhile, the idea behind paying most of the dividends from NYAN.A holdings to B and C was that in return they'd protect NYAN.A from loss of the underlying investment by transferring their holdings to NYAN.A in order to make up any shortfall. NYAN.C was basically worthless trash at that point, in effect mostly Pirate holdings IIRC, so by getting rid of NYAN.B you were stripping them of the protection you were contractually obliged to give them, but still only offering them the same level of returns as though NYAN.B was still there to protect them from losses.

[Deprived]

Like you for example --> I loved how you called the NYAN shutdown "scheme" bizzare. You mean like when I bought back 1100 bitcoins of NYAN.A and NYAN.B on the open market in about a week, with 400-500 bought back the following week? Oh that's so bizzare. Oh and the shareholder motions that allowed me to do it. SO, SO bizzare, huh.

Not all that bizarre. You bought them back for way less than the nominal 1 BTC face value they should've had, which also meant you were paying way less than you claimed the underlying assets were worth. Basically, you drove shareholder value into the ground through mismanagement and then picked up the wrecked shares on the cheap.

I also loved how people were saying it made a lot of sense since it would help out the NYAN.C shareholders as NYAN.B would not take up the extra dividend flow from NYAN.A. And how there were no victims because NYAN.B holders could still get 1 bitcoin per share. And thousands of shares were bought back in that manner. I did good. But now, you want to be an asshole, so you call it "bizzare". Get something straight, YOU are bizzare.

Can anyone here make sense of how the hell usagi is claiming this would've worked? For that matter, usagi, can you point to anyone other than yourself who claimed your scheme made sense? I mean, yes, it would mean that NYAN.C would get the dividend overspill from NYAN.A, but if I'm remembering your baroque structure correctly the only way this would benefit NYAN.C is if the shares being given to NYAN.B holders couldn't pull their weight dividend-wise. Which basically confirms that the GLBSE market was right to value the underlying shares at a lot less than the 1 BTC per NYAN.B share you valued them at.

Meanwhile, the idea behind paying most of the dividends from NYAN.A holdings to B and C was that in return they'd protect NYAN.A from loss of the underlying investment by transferring their holdings to NYAN.A in order to make up any shortfall. NYAN.C was basically worthless trash at that point, in effect mostly Pirate holdings IIRC, so by getting rid of NYAN.B you were stripping them of the protection you were contractually obliged to give them, but still only offering them the same level of returns as though NYAN.B was still there to protect them from losses.

The Nyan structure was totally fucked from the start as usagi failed to grasp or implement one of the basic requirements for a tranched CDO - that the ratio of units sold of each layer be published in advance.  Without knowing the ratio of A:B:C it's impossible to work out the risk/reward ratios.  If you consider just 2 tiers for simplicity (A and B) compare the 2 following extreme scenarios to see the point.

In both scenarios overflow profit from A gos to B, A gets first claim on assets.

Scenario 1.  100 A for each 1 B.  In this scenario all of the overflow from 100 shares of A gos to a single share of B - and in return each share of A gets claim to the assets of 1/100th of a share in B.

Scenario 2.  1 A for each 100 B.  In this scenario the overflow from 1 share of A gets split between 100 shares of B - and in return the single share of A gets claim to the assets 100 shares of B.

It's pretty obvious that in scenario 1 you wouldn't touch A (it has capped profits with no significant claim in return) but would jump on B - as it gets a ton of overflow potential.  The converse is the case in scenario B.

With multiple tiers the same principle applies - and the underlieing point is that you have to know the ratios to assess the risk/reward of the different tiers.  This dismally failed to happen with Nyan.  Parent Nyan seemingly was meant to maintain some sort of balance - but the ratios were never given, never adhered to and Nyan bailed out on it before closure (sales of A and/or C were stopped eventually - but by then the damage was done).  

When it comes to buying back one thing is an obvious fact - unless you buy back in exactly the current ratio of each tier, the act of buying back will necessarily change the ratios and hence alter the risk/reward for investors.  That's an absolute no-no to do.  The only way buying back should occur is in a total close-down - hence more typically there'd be an end date where the whole thing was liquidated (can see the reason why not to do that - lack of liquidity - but that's an argument to use a different structure not to fuck up the one used).

Put simply, usagi totally failed to implement an absolutely essential requirement to run a properly structured asset of the type it was intended to be.  And then screwed up whatever little equilibrium there was by doing buy backs - meaning anyone who had actually done some calculation just had it negated.  And that's when it actually got even worse - but that's a different tale entirely.

EDIT: to be clear this post isn't alleging scamming - just pointing out the mind-boggling degree of ignorance and incompetence associated with the way nyan was run.