I don't know what they mean by "loan loss" as the money borrowed still has to be paid back. It cannot be written off.

The fact that they loaned out money on the basis of option shares is somewhat questionable and maybe illegal..

Normally you loan out money on the basis of shares held, not ones to be purchased later. (If the stock goes up)

Someone here is riding a very tight and thin line. Borderline!

Something is not right and will probably be looked into.