Events are evolving as usual in a fund shutdown crisis. The funds were deeply leveraged to enhance yields. Margin calls come quickly when losses are amplified because of the leveraged positions, which them leads to liquidation of part of the collateral at low prices. All these things are currently happening to these funds. But some new things are special about this crisis that could be lessons for the future. One of the specific things about funds investing in these very illiquid products is the lack of prices to calculate net asset values (NAV). Prices for some CDOs are not posted continuously and people have to rely on proprietary models of valuation. This has many drawbacks. First, one of the problems is obviously the wrong incentive from the manager’s perspective to value wrongly the NAV as fees are higher the better the performance reported. Secondly, in a stress situation proprietary models might not report the correct prices and underestimate the problem. A third issue which is probably pretty worrying currently is a potential “whole market repricing effect”. If the mortgage backed securities portfolio of Bearn Stearn funds are repriced, so will many others that cannot claim a different valuation. This might lead to the revision of the NAV of many others hedge funds dealing with CDOs. Other victims might arise. A sleepy monster seems to be waking up.