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10x Research: Circle surged due to a short squeeze, and the subsequent market trading logic will return to fundamentals

2026-02-26 13:31:50

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10x Research's analysis on platform X indicates that the core driver of Circle's stock price increase is not the earnings report data itself, but rather the market positioning structure, which is more likely to trigger a high-probability short squeeze rather than a simple fundamental reassessment. It is reported that a hedge fund established a large short position before the earnings report was released; however, as Circle's stock price soared in a single day, it triggered a severe short squeeze, resulting in the hedge fund losing approximately $500 million in one day.

10x Research further stated that this round of extreme volatility not only affects Circle but also impacts Coinbase and Bitcoin. Although Circle is a clear bullish target, the overall magnitude of the market is primarily driven by the imbalance in the overall positioning structure of the crypto market. New market catalysts may be on the horizon, potentially reshaping the market narrative, after which market trading logic may return to fundamentals.

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