Asset management institutions' short VIX positions hit new highs. This signal warrants caution—similar extreme positioning occurred between June and July last year, and as a result, the VIX index surged in August, causing the US stock market S&P 500 to enter a correction.

History often has its similarities. When market participants are overly crowded in the same direction, it often creates the most easily triggered points for a reversal. As a fear gauge, VIX can keenly reflect the tide changes in market sentiment.

From the perspective of holdings, this highly consistent bearish attitude among institutions somewhat reflects a concentrated bet on market liquidity and risk asset pricing. The problem is that when enough participants are involved and sufficiently concentrated, the original risk hedging logic may instead become the fuse for the next wave of volatility. It is worth paying attention to the upcoming market rhythm changes.