Goldman: Hedge funds cut leverage by most since March 2020, net exposure at 0th percentile

The striking detail is the percentile, not the point move: net leverage at the bottom of a five-year range signals de-risking has gone well beyond routine trimming, and the speed of the drop suggests funds were caught rather than positioning deliberately. The selling is concentrated in tech, with trend-following strategies adding futures pressure, so the drawdown looks mechanically reinforced rather than fundamentally driven. Whether this deleveraging marks capitulation or the start of a deeper unwind is the open question, and how quickly leverage rebuilds once selling exhausts will say more about conviction than any single week's flows.