Hedge funds have been selling stocks at the fastest pace since July, marking one of the most rapid sell-offs since the 2022 bear market. Single stock short positions have increased in 22 of the last 25 weeks, according to Goldman Sachs. Meanwhile, professional investors' cash levels, as a percentage of assets under management, have fallen to 3.9%, the lowest since 2021, signaling a potential sell-off, as noted by Bank of America. Institutional investors' positioning in U.S. stocks has also declined, with funding spreads measuring long demand through futures, options, and swaps plummeting to near the lowest levels since September 2024. Additionally, the 30-day moving average of the put-to-call ratio has dropped to its lowest since November 2021, aligning with February 2020 levels before the 2020 crash, indicating minimal hedging activity in the market.