Market Bloodbath: When Retail Investors' Darlings Crash All at Once

Tuesday was brutal for retail traders. The Nasdaq tanked over 2%, but here’s the kicker—the stocks retail investors were heavily holding got hammered 3x worse, with Goldman Sachs’ retail index plummeting 3.6%. Biggest single-day wreck since April.

What Went Wrong?

The Palantir domino effect: The “retail darling” that surged 150% this year disappointed with earnings concerns. Down nearly 8% in a single session.

Michael Burry’s short bomb: The legendary “Big Short” guy just filed his holdings, revealing he’s bearish on Palantir and Nvidia. Market went full panic mode.

Crypto contagion: Bitcoin crashed below $100k for the first time since June, briefly hitting $99,932. Ethereum imploded over 10% to $3,225. A cascade of 342,000 liquidations across exchanges totaled $1.3B+ in just 24 hours—85% of that were long positions getting wiped.

The Plot Twist

Even with retail still net buying $560M in stocks that morning, it wasn’t enough to stem the bleeding. Once panic selling kicked in, it was game over.

Crypto’s meltdown didn’t help—reminded everyone of that liquidity crisis three weeks prior. Traders are now bracing for another leg down.