Hedge funds load up on stock shorts, pushing bearish bets near a five-year high

Bloomberg reports hedge funds loaded up on stock shorts in October 2026, pushing bearish bets near a five-year high. Citing Goldman Sachs’ prime brokerage desk, it says short sales exceeded long purchases by roughly five to one across global equities, while short leverage on Goldman’s books sat at the 99th percentile over the past five years. Bloomberg says the positioning raises the risk of a sharp squeeze if markets rebound.