$57 billion in sell supply… Leveraged ETFs largest since 2007

U.S. leveraged ETFs generated a record $57 billion in implied equity sell supply on the fifth of the month, the largest rebalancing-driven figure since records began in 2007, according to Morgan Stanley derivatives data cited by BlockBeats; the number reflects required rebalancing volume rather than executed trades. Retail investors sold heavily in the first 90 minutes after the open, the second-largest such burst since 2016, while long-short hedge fund net leverage fell 5% in a single day—the fifth-largest daily drop since 2010—leaving leverage in the bottom decile of its historical range. The scale of forced mechanical selling underscores how leveraged ETF rebalancing can amplify drawdowns during sharp equity declines.