Goldman Warns Hedge Funds Face Potential Short-Squeeze Storm as Stock-Market Short Bets Near Five-Year Extreme
23/10/2026, 4:30:01
Bollcoin, October 22: Goldman Sachs prime brokerage data shows its global equity short leverage has risen to the 99th percentile of the past five years. While gross leverage has rebounded somewhat, the net leverage of fundamental long-short funds — a measure of how much longs exceed shorts — has dropped to a near three-year low. Since October, global hedge funds have accelerated short building, with bearish bets nearing a five-year peak and the ratio of short sales to long buys at about 5 to 1. A sentiment rebound catalyst could trigger a violent short squeeze.