u/SanDisk_Made_Me_Rich

South Korea's KOSPI shed 40% from peak, Samsung and SK Hynix are down massively, and margin debt has dropped only 15% from record highs — 85% more forced liquidation likely still ahead. The unwinding of leveraged ETFs tracking volatile semiconductors (Samsung, SK Hynix) is amplifying declines, and institutional investors are avoiding the market while retail continues to deleverage. This creates a negative feedback loop. The structural de-leveraging in Korean semiconductors, which account for nearly half the KOSPI, is far from complete. Continued forced selling will pressure global semiconductor ETFs like SMH, which have heavy exposure to these names. A sharp regulatory intervention (e.g., ban on short selling, emergency rate cuts) could spark a short squeeze. Also, Samsung's record Q2 earnings (posted in the article) might provide a temporary floor.