Part 8/10:
Some industry observers suggest that these losses could prompt a rethink of hedge fund strategies, especially the long-short model, which involves balancing long and short positions to pursue relative value. Many funds reduced or eliminated short exposure during this period, leading to shifts in market positioning.
Regulatory and Market Implications
Both the United States and Singapore are watching these developments closely. While the U.S. Securities and Exchange Commission (SEC) was criticized for potentially delaying intervention, the event has sparked debates about market fairness, the power of retail traders, and the need for better regulation.