Orderly Deleveraging

The most likely path is that the fastest hedge-fund equity reduction in over a decade reflects risk limits being reset rather than a disorderly liquidation. With many funds already underweight AI and Nasdaq already in correction territory, incremental selling pressure starts to fade over the next 1-2 sessions.

Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.