The AI long trade, which has continued for nearly two years, is undergoing a violent reversal. Goldman Sachs Prime brokerage data shows that from October 8 to 14, hedge funds net sold global AI stocks for five consecutive trading days, and the cumulative net purchases since the beginning of 2025 were all erased in just one week. At the same time, up to now, the 20 AI and semiconductor stocks with the highest market capitalization in the world have collectively evaporated more than 1 trillion US dollars in market capitalization. The sell-off has spread from the AI sector to the global market. The South Korean stock market fell into a bear market, and the Seoul market triggered a fusing mechanism. What is even more alarming is that the overall leverage ratio of hedge funds is still high. Whether the centralized liquidation of AI transactions will trigger a new round of deleveraging is becoming the focus of market attention.

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