ChainThink report, November 6: U.S. stocks plunged sharply, with the Nasdaq-100 index posting its worst single-day drop since March 2020, and the S&P 500 index shedding $3 trillion in market capitalization.

Multiple analysts suggest that collective liquidations of hedge funds may have been one of the catalysts driving the accelerated market decline.

According to investor letters obtained by Bloomberg, the hedge fund Walleye Capital, managing over $17 billion in assets, lost 5.9% in October—the worst monthly performance since March 2020.

The firm plans to return part of its cash reserves and scale back its internal equity business; equity investment head Anil Gondi has agreed to part ways with a significant portion of the equity team, as the company shifts focus toward core strategies including volatility, quantitative trading, and external partnerships.

Market rumors also suggest that hedge fund Millennium has withdrawn over $1.5 billion in leveraged capital from two external fund managers, while Lone Pine is facing speculation of complete insolvency—though these claims remain unconfirmed.