Hedge funds are currently facing the steepest margin calls since the 2020 Covid crisis, as reported by the Financial Times. This situation arises from a global market sell-off that has significantly reduced the value of their holdings, prompting banks to demand additional funds as security for loans. The intensity of these margin calls has led to forced selling and is expected to continue affecting market dynamics into the next week. Some traders have reported increased margin requirements and liquidity issues, particularly with brokers like Interactive Brokers (IBKR). Market observers anticipate that the coming days could see either a significant recovery or further declines, depending on the response to these margin calls and the broader market sentiment. Margin calls are generally liquidated between 1pm and 2pm, and are not expected to reset until Monday or Tuesday, with reinvestment opportunities not available until Wednesday or Thursday.