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Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

Summary:
An index of the "most-shorted" stocks in the US equity market is up a stunning 54% in January. For context, it was up 49% in the entirety of 2020, one of its greatest years ever.Source: BloombergAnd as shorts were squeezed drastically, hedge funds were forced to liquidate their favorite longs (and likely most liquid) to cover the margin calls and/or losses on the shorts...Source: BloombergThat spilled over into the broad market with Nasdaq clubbed like a baby seal...Biggest down day for markets since OctoberAll S&P Sectors were lower today, led by Tech...Source: BloombergBut, don't worry, Fed's Jay Powell and the Biden admin said they are "monitoring" the markets...[embedded content]Today saw the biggest selling program (downtick) since October.,..Source: BloombergThe selling peaked as

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An index of the "most-shorted" stocks in the US equity market is up a stunning 54% in January. For context, it was up 49% in the entirety of 2020, one of its greatest years ever.

Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

Source: Bloomberg

And as shorts were squeezed drastically, hedge funds were forced to liquidate their favorite longs (and likely most liquid) to cover the margin calls and/or losses on the shorts...

Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

Source: Bloomberg

That spilled over into the broad market with Nasdaq clubbed like a baby seal...

Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

Biggest down day for markets since October

All S&P Sectors were lower today, led by Tech...

Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

Source: Bloomberg

But, don't worry, Fed's Jay Powell and the Biden admin said they are "monitoring" the markets...

Today saw the biggest selling program (downtick) since October.,..

Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

Source: Bloomberg

The selling peaked as Powell began speaking...

Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

Source: Bloomberg

But today's malarkey was in the big short-squeezes, so here are a handful for your amusement...

GME was up anywhere between 100% and 350%...

Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

AMC exploded almost 300% today...

Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

NOK spiked briefly but held a loit of the gains for a 60%-plus gain...

Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

KYNC was up almost 200%...

Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

And EXPR was up over 200% despite giving half its early gains back...

Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

But yeah, apart from all that, the market is totally normal.

Growth's bid over Value stalled today...

Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

Source: Bloomberg

Interestingly, non-profitable tech companies lost ground this week...

Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

Source: Bloomberg

VIX surged above 30 today as stocks sold off but we can't help but feel this is call-buying-driven for now... nevertheless, it's a notable decoupling.

Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

Source: Bloomberg

Bonds were bid as stocks puked...

Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

Source: Bloomberg

10Y Yields briefly dipped below 1,.00% today - the lowest since the 6th of Jan...

Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

Source: Bloomberg

The dollar was higher on the day, tagging the top of its recent channel...

Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

Source: Bloomberg

But bitcoin dropped back below $30k intraday before bouncing back...

Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

Source: Bloomberg

Gold slipped lower on the day...

Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

Source: Bloomberg

Oil ended unch after some wild whipsaws around inventories.,..

Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

Source: Bloomberg

Finally, this will make you laugh - the holding company for Blockbuster's liquidation is up a rather amusing 4900% in the last two days...

Stunning Short-Squeeze Sparks Hedge Fund Hell, Bitcoin & Big-Tech Battered

Source: Bloomberg

Yes, that Blockbuster!

Tyler Durden
Tyler Durden (a pseudonym) represents the idea that a return to truly efficient markets is a possibility and a necessity. After having experienced the inner workings of capitalism at various asset managers and advisors, Tyler believes that the current model is flawed and a deleveraging at every level of modern society is needed to reinspire the fundamental entrepreneurial spirit.

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