KOSPI fell 45% in one month; margin call/liquidation data suggests forced selling has not fully exhausted. The scale of margin liquidation often leads to cascading sell-offs before a bottom. Shorting the South Korea ETF (EWY) captures continued downside or volatility. While the crash is already priced in, the systemic leverage wipeout implies further weakness, especially if global risk-off sentiment spreads. South Korean government/protective measures (e.g., ban on short selling, liquidity injections) could trigger a sharp bounce. The move may already be exhausted. (Only one actionable trade idea extracted – author’s thesis is purely bearish on KOSPI, and EWY is the most liquid proxy.)
KOSPI fell 45% in one month; margin call/liquidation data suggests forced selling has not fully exhausted. The scale of margin liquidation often leads to cascading sell-offs before a bottom. Shorting the South Korea ETF (EWY) captures continued downside or volatility. While the crash is already priced in, the systemic leverage wipeout implies further weakness, especially if global risk-off sentiment spreads. South Korean government/protective measures (e.g., ban on short selling, liquidity injections) could trigger a sharp bounce. The move may already be exhausted. (Only one actionable trade idea extracted – author’s thesis is purely bearish on KOSPI, and EWY is the most liquid proxy.)