Wall Street Dumped Korea. Now Comes The Squeeze
Korea: From panic to FOMO
What a difference a few sessions make. Korean equities are surging as AI giants rebound from major technical support, led by blowout SK Hynix numbers. But beneath the rally, the positioning story is even more interesting. Hedge funds have been aggressively dumping Korean exposure, downside protection was chased during the washout, and valuations reached extreme lows. Now investors who spent the washout cutting exposure and chasing protection are being forced to chase the rebound. The question is whether this is the start of something bigger or just another violent move inside a wide trading range.