If you're wondering why the market keeps selling off, take a look at these two charts from Goldman Sachs. The chart on the left shows how much hedge funds have been buying versus selling throughout 2026. When the black line moves higher, it means hedge funds are buying more than they're selling. When it moves lower, it means they're selling more than they're buying. Notice those three red boxes in April, August, and October? Each one highlights a period of extremely aggressive selling, with the latest reading approaching the lows we saw earlier this year. In other words, hedge funds have been dumping stocks at a pace similar to some of the worst selling periods we've experienced earlier this year. Now look at the chart on the right. The blue line represents how much leverage hedge funds are using on their long positions, meaning stocks they're betting will go higher. The red line represents leverage on their short positions, meaning stocks they're betting will go lower. Notice how the red line has climbed dramatically. According to Goldman Sachs, short leverage has now reached the 99th percentile over the past five years. In simpler terms, hedge funds are carrying some of their largest bearish positions in years. And this helps explain why we're seeing so much pressure across AI, semiconductors, memory, and other high growth stocks. Not only are institutions selling their existing positions but they're also increasing their bets that stocks will continue falling. And as someone said unfortunately, we're just collateral damage in the battles between hedge funds. What's even crazier is that some of these hedge funds have been getting absolutely hammered themselves and some funds are under tremendous pressure to recover their losses. And who knows, maybe aggressively shorting the market is their grand plan to finally come back to life before the year ends, haha. I'm obviously being a little sarcastic, but when large institutions start selling billions of dollars worth of stocks, retail investors get caught in the middle. Even companies reporting strong earnings and growing their businesses can get dragged down simply because large funds are reducing risk or betting against the broader market. But here's something important to understand.The same positioning that's putting pressure on stocks today could help fuel a pretty aggressive recovery. When investors short a stock, they eventually have to buy it back to close that position. If the market starts recovering, some hedge funds may rush to cover their shorts, creating additional buying pressure. That's why markets can sometimes recover just as aggressively as they sell off. Of course, none of this means we've reached the bottom. Hedge funds can continue selling, and bearish positioning can remain elevated for quite some time. But I think it's important to recognize that a lot of this selling is being amplified by institutional positioning. It doesn't necessarily mean the long term fundamentals of every company being sold have suddenly deteriorated. My long term conviction in AI infrastructure hasn't changed, regardless of how ugly this gets.