Leverage just had a brutal week
Borrowed money amplified the upside. Then it amplified the pain.
$16B AI portfolio sold overnight
A hedge fund that was up 439% in H1 was forced to sell after leverage and margin calls hit.
Korea got caught in the same trap
More than 1.2M accounts faced margin calls as the KOSPI plunged around 40% from its peak.
Then SoftBank joined the story
It borrowed $10B against its OpenAI shares to fund its next investment.
The bigger warning
US margin debt hit $1.5T, up 49% YoY , even as markets stayed near record highs.
When markets rise, leverage looks smart.
When they fall, someone else can decide when you sell.
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