A systemic margin cascade emanating from the KOSPI index triggered a violent, automated liquidation across the broader semiconductor sector on Tuesday. When highly leveraged positions in Asian markets face abrupt margin calls, global hedge funds are frequently forced to liquidate their most liquid holdings to raise cash quickly.
This selling pressure dragged shares of ASML Holding N.V. (NASDAQ: ASML) down by more than 5% during intraday trading.
