SK Hynix's record profit misses forecasts, shares slump 10% despite robust AI chip demand
Concerns about slower AI spending by big tech. KOSPI closed −6%.
reuters.com · Yang & JinIf you don't know why,
you're the exit liquidity.
This actually happened. Last week.
Numbers from Reuters and UPI, July 2026.
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Part 1 · The Story
It's called HBM. Super-fast memory, stacked in layers.
Barely anyone on Earth makes it well. SK Hynix makes about half of it, and Nvidia is its biggest customer.
Part 1 · Everyone Piles In
World's No.2 memory maker. Supplies Nvidia.
World's No.1 memory maker.
of the whole Korean market, in two names
of everything the market gained
It's a team where two players score 70% of the points. If they go cold, everybody loses.
Part 1 · The Crowd
No affordable home. No good job. So young Koreans went all in on stocks.
The government had been telling them to do exactly that. Sell the property, buy shares.
Part 1 · The Accelerant · Late May 2026
Korea approved 2× leveraged ETFs on single stocks.
₩1,000,000 in. At 2× every move hits twice as hard, both ways.
Part 1 · Borrowed Money
Margin debt hit an all-time record.
Credit lines maxed out. Then they bought again before the first trade had even been paid for.
≈ $21 billion borrowed, on the same few stocks.
Part 1 · The Top · Q2 2026
None of it was fake. That's what makes this scary.
Part 2 · The Turn
Not on bad news. On good news that wasn't good enough.
Profit came in about 5% below what the market expected. That was enough. Everyone who wanted the stock had already bought it, so there was nobody left to buy and plenty of people wanting out.
Part 2 · Don't take my word for it
Concerns about slower AI spending by big tech. KOSPI closed −6%.
reuters.com · Yang & JinThree sessions: −14.65%, −9.61%, −5.64%.
upi.com · SeoulPart 2 · The experts
Not one of them warned you first. They followed the price down.
Korea Investment was the odd one out. It said the miss was late shipments, not weak demand.
Part 2 · The Mechanism
A 2× fund has one rule. End every day at exactly twice its exposure. That's a contract, not a choice.
Price dips a bit. Just a normal red day.
Now the fund is over its limit. The rules force it to sell into the close.
That selling pushes the price down further.
Banks start liquidating everyone on margin. More selling.
Tomorrow opens lower and it starts again.
Nobody chose this. The rules did it, automatically, every afternoon, for weeks.
Part 2 · Who paid for it
The people who lost the most were the ones who'd been told to buy in.
Via UPI, 30 Jul 2026.
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Part 3 · Follow the money



If they blink, Korea pays.
Part 3 · Mid-roll · The bigger question
Korea was the first domino.
Doubts that Microsoft, Amazon, Meta and Oracle can fund the buildout.
SK Hynix signed ~10 five-year deals.
China's CXMT just listed.
SK Hynix is quietly locking in five-year contracts.
Part 3 · The strange part
Record margin. "Major customers are still requesting more memory supply," their president told the earnings call.
Halved in a month. Meanwhile they raised spending to about $27.6B. They're investing more, not less.
Old crashes happened because the business broke.
This one happened because the borrowing broke.
Part 4 . Where I think this goes
The forced selling hasn't finished, so the next few weeks stay ugly. But the company itself never broke.
Part 5 · The takeaway
Right about the business. Still lost money on the price.
By the time the news lands, everyone's already in.
Borrow to buy, and someone else decides when you sell.
A 5% miss cost half the company's value.
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