Asia's leverage boom is rapidly reversing: Margin debt in South Korea has declined -$4 billion from its June peak, to $22 billion, the lowest since mid-April. At the same time, stock margin loans in China have dropped -$59 billion, to $385 billion, the lowest since the 2nd week of April. Similarly, in Taiwan, margin debt has fallen -$4 billion from its July peak, to $15 billion, the lowest since mid-May. Combined, margin debt across these three markets has declined by a massive -$67 billion. On top of that, South Korea-listed leveraged ETFs linked to SK Hynix and Samsung have lost -$7 billion in assets since their June peak, down -63%, to $4 billion. Leverage is amplifying historic volatility across Asian markets.(The Kobeissi Letter)