TechFlow reports that on February 26, 10x Research published an analysis on X stating that the primary driver behind Circle’s stock price surge yesterday was not its financial results per se, but rather market positioning—specifically, a structure more conducive to a high-probability short squeeze rather than a pure fundamental re-rating. It is reported that hedge funds had established large short positions ahead of Circle’s earnings release; however, Circle’s single-day stock price spike triggered an intense short squeeze, causing hedge funds to incur approximately $500 million in losses on that day. 10x Research added that this volatility extended beyond Circle to include Coinbase and Bitcoin. Although Circle was clearly a bullish target, the magnitude of the broader move was primarily driven by imbalances in overall crypto market positioning. A new market catalyst may soon emerge—potentially reshaping the market narrative—and trading logic could subsequently revert to fundamentals.
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