foreign exchange question its, liability, exchange, question

lunarfollies

CFAI book, p654/5,
it seems that trader is losing since he took a short position on pound, and bank is losing too since its liability increased. why is that??
I’m confused about the wording of this question.

genuinecfa

Maybe you are missing the point here which is
by “bank” they meen the bank for which the trader works…not the bank which did the short sale for him….
so the trader lost, the bank lost, and the banks liabilities increased cause now they gona need more $ to but the pounds…