10x Research: Circle surges due to short squeeze; the subsequent market trading logic will still return to fundamentals

DeepFlowTech · 2026-02-26T05:32:36+00:00

On February 26, 10x Research analysis pointed out that the main driver of Circle's stock price increase was the market position structure, leading to short covering. Hedge funds built large short positions before the earnings report release, and Circle's stock price surged, triggering a short squeeze, resulting in approximately $500 million in losses. The overall market trend is affected by the imbalance in the crypto market's position structure, which could lead to new market catalysts and reshape trading logic.

DeepFlowTech

2026-02-26 05:32:36

Abstract generation in progress

Deep Tide TechFlow News: On February 26, 10x Research posted an analysis on X platform indicating that the core driver behind Circle’s stock price increase yesterday was not the earnings report itself, but rather the market positioning structure. This structure is more likely to trigger a high-probability short squeeze rather than a simple revaluation of fundamentals. It is reported that hedge funds established large short positions before the earnings release. However, as Circle’s stock price surged in a single day, triggering intense short squeeze activity, hedge funds suffered approximately $500 million in losses in one day. 10x Research added that this round of intense volatility not only affected Circle but also impacted Coinbase and Bitcoin. Although Circle is clearly a bullish target, the overall market movement was mainly driven by an imbalance in the overall crypto market positioning. A new market catalyst may soon emerge, potentially reshaping market narratives, after which trading logic could revert to focusing on fundamentals.

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