The market value of the US software industry has evaporated by 1 trillion dollars, while hedge funds have made a staggering $24 billion in profits this year.

Gelonghui, February 5th – According to sources from two major Wall Street funds, hedge funds are increasing their short positions in software stocks, becoming one of the driving forces behind the severe sell-off in the sector since the beginning of this year. Data from financial analytics firm S3 Partners shows that since 2026, hedge funds have made $24 billion in profits by shorting software stocks, while the total market capitalization of the US software industry has evaporated by $1 trillion during the same period.