This is similar to what bankrupted the Enron execs. When told to diversify their holdings from Enron stock, instead of selling the stock and buying other stocks/etc, they borrowed against their Enron stock and used that to invest.

When the stock came down it snowballed, they hit limits where they had to settle-up their loans, but to do that they had to sell large amounts of Enron stock that then dropped the price further.

This is a dangerous game.