As retail investors are actively buying US stocks, hedge funds are significantly increasing their short positions. Following President Trump's announcement of a 90-day pause on tariffs, the US stock market experienced a rebound, with retail investors investing another $5.4 billion (approximately NT$163.08 billion) on Monday to buy the dip, setting a new record. However, hedge funds are aggressively shorting the market.

Data from the Commitments of Traders (COT) report shows that the short position amounts have reached $25 billion (approximately NT$755 billion) over the past three periods, marking the largest scale in at least a decade. Chinese financial media have reported that even as retail investors buy in amidst negative news and uncertainty, hedge funds are moving to short the market.

Goldman Sachs trader Quin noted that despite the Nasdaq index performing well in recent weeks, new short positions have far exceeded long positions unexpectedly. COT data from May 6 to 13 showed that a massive short-selling behavior had emerged, amounting to $11.1 billion (approximately NT$335.22 billion). While $4.2 billion (approximately NT$126.84 billion) was spent on purchases, the overall net long position still decreased by $6.9 billion (approximately NT$208.38 billion).

Quin found that the main force behind the short selling is hedge funds, which had a net selling amount of $7.3 billion (approximately NT$220.46 billion), with shorts surging to $9.4 billion (approximately NT$283.88 billion). Goldman Sachs pointed out that although hedge funds' short positions have surged, it does not necessarily imply a bearish outlook for the market, as it could also be a strategy to hedge other long positions. Nevertheless, the substantial short selling by hedge funds highlights their skepticism regarding the upward trend of the US stock market.