Leto Bao Attributes Storage Sector Sell-Off to Institutional Exits and Forced Liquidations

Leto Bao said a recent sharp decline in the storage sector was driven by concentrated institutional exits combined with forced liquidations of leveraged funds, triggering a chain of liquidations and a downward spiral in prices. According to Odaily, Bao wrote that a moderate clearing of leveraged positions would be more beneficial for the market’s long-term health. Bao also said investors should build their own research framework and convictions, and he offered suggestions for retail investors based on risk tolerance. He said those facing significant living pressure should prioritize reducing leverage, those without savings should focus on improving their earning ability, and those with some capital but limited investing experience should consider allocating to index funds rather than individual stocks.