Hedge Funds Are Puking Longs To Cover Short-Squeeze Losses

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News Story Source: https://www.zerohedge.com, by Tyler Durden
Yet for once (it would appear), wallstreetbets is actually behind the market, because a quick look at some of the industry's favorite longs shows that they got hammered just as the most shorted names were soaring, as hedge fund sharks – smelling blood in the water – starting taking bites out of their wounded peers. Smid-cap hedge fund growth darlings like Roku, Peloton and Square tumbled as much as 6% on Tuesday as the short squeeze rampage entered into its third day. Not coincidentally, Bloomberg notes that Goldman's Hedge Fund VIP ETF which tracks hedge funds' most popular stocks, slumped for a fourth straight day, the longest stretch since October even as the company's basket of most-shorted names soared 15% during the same period.

It appears we were on to something as Goldman Sachs is out with a note this morning warning of exactly this…

Unprecedented divergence by historical standards: Despite being not profitable or running challenged business models, our
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