Over the following years, he turned that into $13 million by following one simple strategy: Shorting volatility every time it spiked.

As MacroVoices host Erik Townsend points out, that strategy has worked for many retail investors over the past eight years. And in a brief "postgame" interview with the Macro Tourist Kevin Muir following a longer interview with Francesco Filia, a fund manager at Fasanara Capital, the former explains how many investors don't understand the risks associated with shorting volatility, as well as the possible repercussions if exchanges and brokerages don't take the appropriate steps to limit this.

Townsend begins the discussion by asking Muir about a chart he created of the VXX - the long-VIX ETF - which, because of the low-volatility environement, has repeatedly split leading to unbelievable wealth destruction.