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Obviously, you are correct. But if we replace "blowing up" with "unwinding in a forced, but non-panic-ed fashion" I think it is frequently correct and does explain a lot of the dynamics seen over past decade. Factor volatility and who-has-same-positions-volatility has become more important than simple market exposure. The times when I make (or lose) money on both sides of my book on no news are too numerous to count. And to my mind, the most important factor has become who-has-same/opposite-positions factor.

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sorry to be so naive, but can someone let me know what exactly a "pod" is?

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Levered multi manager shops with tight risk controls.

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