Goldman Sachs warns hedge funds of potential short squeeze storm, stock market short bets approaching five-year limit Goldman Sachs' main brokerage business accounts show that its global stock short leverage ratio has risen to the 99th percentile in the past five years. Although the overall leverage ratio has rebounded, the net leverage ratio of fundamental long short funds, which measures the extent to which long positions exceed short positions, has fallen to a nearly three-year low. Since October, global hedge funds have accelerated the establishment of short positions, with bearish bets approaching a historical peak in five years. The ratio of short trades to long buys has reached about 5:1. Once market sentiment rebounds, highly crowded short positions may trigger a severe bearish market. Goldman Sachs data shows that hedge funds are currently more inclined to engage in portfolio hedging rather than completely liquidating and exiting. In the context of soaring short exposure and limited net exposure, technology stocks still firmly occupy the core position of the capital game.