Part 7/10:
Therefore, the possibility of a large-scale short squeeze akin to GameStop’s appears remote within Singapore. The regulatory framework and market depth serve as significant buffers against such volatility.
Institutional Risks and the Future of Hedge Funds
The GameStop saga devastated some hedge funds, with estimates of over $12 billion in losses in January alone. Many of these funds rely heavily on advanced technological tools to hedge against volatility. However, the unprecedented nature of this event exposed vulnerabilities in current risk management approaches.