Chamath Palihapitiya

across the two, but I think one is tactical and one is much more strategic, but I think both are happening.

The tactical one is that we're at a moment in time where a lot of the smart money hedge funds are starting to massively de-gross.

The tactical one is that we're at a moment in time where a lot of the smart money hedge funds are starting to massively de-gross.

And what that means is they're trimming a lot of positions and they're just taking on a lot less risk.

And what that means is they're trimming a lot of positions and they're just taking on a lot less risk.

Why, I don't exactly know.

Why, I don't exactly know.

It could be motivated by the second thing that I'm going to talk about.

It could be motivated by the second thing that I'm going to talk about.

But the point is, in a de-grossing cycle,

But the point is, in a de-grossing cycle,

you tend to be trimming risk and making your position sizes much smaller.

you tend to be trimming risk and making your position sizes much smaller.

So the longs become less long, the shorts become less short and you just shrink.

So the longs become less long, the shorts become less short and you just shrink.

And so there's just general downward pressure.

And so there's just general downward pressure.

That is a clear behavior right now.

That is a clear behavior right now.

But I think the structural change is the more important one.