However, because $UPST saw a huge amount of cash being vacuumed away in operating activities, I got concerned.

The big reason for why $UPST saw immense cash burn from operating activities was because it bought a huge number of loans for immediate resale. Because it couldn't sell those loans by the end of the quarter, that number was large.

As credit conditions tighten, Upstart will see itself struggling to offload the loans on its books. Investors like the business because it's supposed to be lean, where it doesn't hold the loans that it originates onto its books.

If worse come to worse, $UPST will have to keep the loans on its books and slow down its loan origination if it doesn't have enough cash to fulfill new loans.