They don't need any "money" all they do in the lending program is taking a certain amount of Hextra coins and giving you back a certain amount of hextracoins later which is smaller when the price increases that's why they pull it up
They wouldnt need money, if we were on an external. But since its internal, the cashout is from their exchange.
smartcrypto is correct Hextra has premined HXTs and they pay loans with them. No need for bitcoin. They keep the value of HXT artificially high so they don´t have to pay too many HXT to lenders...
But when you withdraw BTC, where does it come from? It comes from Hextra's wallet.
A customer of Hextra like you or me buy the HXT with a deposited bitcoin. There comes the bitcoin.
This is also the reason why they can do crazy giveaways like Hextragold, because they pay it in hextracoins that are free for them .
Technically Bitconnect paid all the loans , because they gave all a market rate of bcc. Too bad that no-one would buy them at that price anymore. But the point is the company waists no bitcoin , nor do they have to. That´s the genious of lending platforms.