From ba8fa8e253e4d9fd374e2cd3251afc51a38e00d5 Mon Sep 17 00:00:00 2001
From: Mike Johnston <mike@nervesocket.com>
Date: Fri, 20 Mar 2026 18:44:55 +0000
Subject: [PATCH] revert c1bcac8a3079258a42bf4665ca350b3c5fb872c3

revert fix: implement fund dissolution for insolvent funds after SELL_SHORT trades
hate that
---
 src/app/api/admin/funds/[fundId]/route.ts |  2 +-
 src/app/api/trade/route.ts                | 65 +----------------------
 2 files changed, 2 insertions(+), 65 deletions(-)

diff --git a/src/app/api/admin/funds/[fundId]/route.ts b/src/app/api/admin/funds/[fundId]/route.ts
index 27046a6..a5b6221 100644
--- a/src/app/api/admin/funds/[fundId]/route.ts
+++ b/src/app/api/admin/funds/[fundId]/route.ts
@@ -112,7 +112,7 @@ export async function DELETE(
   const portfolioValue = fund.user.positions.reduce((sum, p) => {
     const val = p.positionType === 'LONG'
       ? p.shares * p.hashtag.currentPrice
-      : (2 * p.avgBuyPrice - p.hashtag.currentPrice) * p.shares
+      : p.avgBuyPrice * p.shares - (p.hashtag.currentPrice - p.avgBuyPrice) * p.shares
     return sum + val
   }, 0)
   const nav = calcFundNav(fund.user.balance + portfolioValue, fund.sharesOutstanding)
diff --git a/src/app/api/trade/route.ts b/src/app/api/trade/route.ts
index 338b0dc..7ef0cf9 100644
--- a/src/app/api/trade/route.ts
+++ b/src/app/api/trade/route.ts
@@ -2,7 +2,7 @@ import { NextRequest, NextResponse } from 'next/server'
 import { getServerSession } from 'next-auth'
 import { authOptions } from '@/lib/auth'
 import { prisma } from '@/lib/prisma'
-import { calcTrade, calcFundNav } from '@/lib/pricing'
+import { calcTrade } from '@/lib/pricing'
 import { formatCurrency } from '@/lib/utils'
 import { z } from 'zod'
 
@@ -169,68 +169,5 @@ export async function POST(req: NextRequest) {
     }
   }
 
-  // If this was a fund's SELL_SHORT and the fund is now insolvent, dissolve it
-  if (type === 'SELL_SHORT' && fundId) {
-    const updatedFundUser = await prisma.user.findUnique({
-      where: { id: user.id },
-      select: { balance: true, fund: { select: { id: true } } },
-    })
-    if (updatedFundUser && updatedFundUser.balance < 0 && updatedFundUser.fund) {
-      await dissolveFund(updatedFundUser.fund.id)
-      return NextResponse.json({ ok: true, dissolved: true })
-    }
-  }
-
   return NextResponse.json({ ok: true })
 }
-
-/**
- * Dissolves an insolvent fund: pays investors at current mark-to-market NAV
- * (floored to $0), then deletes the HedgeFund record and its shadow User.
- * Called automatically when a SELL_SHORT trade pushes a fund balance negative.
- */
-async function dissolveFund(fundId: string) {
-  const fund = await prisma.hedgeFund.findUnique({
-    where: { id: fundId },
-    select: {
-      id: true,
-      userId: true,
-      sharesOutstanding: true,
-      investments: { select: { userId: true, shares: true } },
-      user: {
-        select: {
-          balance: true,
-          positions: {
-            where: { shares: { gt: 0 } },
-            select: {
-              shares: true,
-              avgBuyPrice: true,
-              positionType: true,
-              hashtag: { select: { currentPrice: true } },
-            },
-          },
-        },
-      },
-    },
-  })
-  if (!fund) return
-
-  const portfolioValue = fund.user.positions.reduce((sum, p) => {
-    const val =
-      p.positionType === 'LONG'
-        ? p.shares * p.hashtag.currentPrice
-        : (2 * p.avgBuyPrice - p.hashtag.currentPrice) * p.shares
-    return sum + val
-  }, 0)
-  const nav = calcFundNav(fund.user.balance + portfolioValue, fund.sharesOutstanding)
-
-  for (const inv of fund.investments) {
-    const payout = Math.max(0, inv.shares * nav)
-    if (payout > 0) {
-      await prisma.user.update({ where: { id: inv.userId }, data: { balance: { increment: payout } } })
-    }
-  }
-
-  await prisma.hedgeFund.delete({ where: { id: fund.id } })
-  await prisma.user.delete({ where: { id: fund.userId } })
-}