How crazy is the US stock market? Shale gas pioneer Chesapeake (Chesapeake) has been rumored to be on the verge of bankruptcy for weeks, and its shares have risen nearly 200% to $69.92 overnight from less than $25 at Friday's close, up from less than $16 at the start of trading on Friday.

Gamblers who want to make a lot of money in the stock market may be disappointed this time while the Fed is propping up the market. Because shortly after the close, there were media reportsChesapeake is preparing to file for bankruptcy, which could cede control of the oil and gas company to its senior creditorsNow their shares may be worthless. The company's market capitalization is $684 million, up 425% in the past two days.

According to the Bloomberg report, Chesapeake was the largest producer of ground-drilling shale gas in the United States before the crisis.About $9 billion of debt is owed and discussions are under way on whether to skip the interest due on June 15 and start negotiations with creditors on the grace period.

The company also began pleading with lenders to provide "debtor-held assets" financing to fund its operations during bankruptcy, according to one of the people familiar with the matter.

The Oklahoma City-based manufacturer is negotiating a restructuring support agreement, according to people familiar with the matter.Under the agreement, holders of its so-called FILO term loans will take a majority stake in bankruptcy.These people spoke on the condition of anonymity because of the discussion of confidentiality. The support agreement remains unstable and the terms are likely to change, people familiar with the matter said.

Long before COVID-19 's epidemic hit commodity prices and demand for crude oil, rumors of the inevitable bankruptcy of Chesapeake had been heard.

In its heyday more than a decade ago, the producer was a $37.5 billion giant headed by McClendon, an outspoken advocate of the natural gas industry. But Chesapeake accumulated billions of dollars in cheap junk debt and eventually went bankrupt because of a huge glut of natural gas.

Some investors may think these stocks may have some value, but just look at the bonds that the company is about to default on in June 2021.These bonds are now trading at 3% of their face value....