NO CHATGPT PLEASE

Select a case $($amaranth$)$ where the use of derivatives led to significant losses. Outline the trading strategy that was responsible for these losses.

Critically assess the extent to which the inherent risks of economic activity were diversified or exacerbated by the financial markets and derivatives in this case.

Discuss the main lessons that the financial industry and market participants should learn from the case$($s$)$ you have examined. Reflect on the implications for risk management practices and the regulation of financial derivatives.