The post energy shock and leverage surge appeared on BitcoinEthereumNews.com.

Global energy turmoil and record retail leverage collided this week, sending the korean stock market into its worst single-session collapse on record. Historic KOSPI plunge wipes out $625 billion South Korea’s benchmark KOSPI index plunged 12% on Wednesday in its largest one-day drop ever, erasing roughly $625 billion in market value. The index, which tracks major companies listed on the Korea Exchange, closed near 5,093.54 points after a brutal session. Trading was briefly halted when market-wide circuit breakers were triggered at the 8% decline threshold, forcing a 20-minute pause. However, selling pressure resumed almost immediately once activity restarted, underscoring the depth of panic across Seoul’s equity market. The collapse capped a two-day slide that pushed the KOSPI into brief bear market territory, after the gauge fell more than 20% from its all-time high reached just two days earlier. That said, the speed of the reversal stunned analysts who had been focused on strong momentum only days before. Tech stock selloff and leveraged retail exposure Major technology names led the decline, amplifying losses across the index. Samsung Electronics tumbled 11.7%, while memory chipmaker SK Hynix dropped 9.6% during the session, dealing a heavy blow to one of Asia’s most closely watched tech hubs. The retreat followed months of aggressive positioning by retail investors. Outstanding margin debt surged to 32.67 trillion won, about $22.4 billion, by late January 2026, an increase of 25% from the previous year. Moreover, that build-up in leverage left households highly vulnerable to even modest price swings. As prices slid this week, brokerages began issuing margin calls that forced investors to liquidate positions en masse. These margin call forced liquidations accelerated the downturn, creating a feedback loop in which falling prices triggered more selling and further declines in the index. Geopolitics and the Middle East energy shock The…

---

Filed under: News - @ March 4, 2026 9:20 pm