[Hedge Funds' Net Exposure to Magnificent 7 Hits Record High of 22%, Crowded Trades May Heighten Market Correction Risks] According to Hupzy (Spot On Chain), hedge funds' net exposure to the U.S. stock market's 'Magnificent 7' has risen to 22%, reaching a historic high and surpassing the previous peak of 21% in June 2024, up 7 percentage points from July this year. In comparison, during the bottom of the bear market in 2022, this metric was only 8%. The record-breaking long positions reflect institutional investors' strong confidence in tech stocks but also suggest that trades may be overly crowded, which does not necessarily indicate that the market will continue to rise. If the underlying investment logic changes, large-scale unwinding of positions could trigger sharp reversals and directly impact the S&P 500 perpetual contracts market. Additionally, declining risk appetite may further exert pressure on Bitcoin.