WhyItDropped

KOSPI · July 13, 2026

The day leverage broke itself

-8.95%

single-day change vs previous close

Part of a longer stretch

The AI bubble argument hits the KOSPI

midway through · 2026-06-22 → 2026-07-30, -38.63% over the whole period

What happened that day?

  • The KOSPI fell 8.95% on the day, down 669 points to close at 6,806.93
  • A domestic brokerage published a report cutting its second-quarter forecast for SK Hynix, and the stock fell fifteen percent
  • Structure then made it worse. Leveraged products tied to that single stock had to sell automatically in proportion to the fall
  • What those products were forced to sell that day came to eighteen percent of the stock's turnover. Selling pushes the price down, and the lower price forces more selling
  • Leveraged products multiply gains on the way up, and they manufacture selling at the same multiple on the way down
  • Circuit breakers fired seven times in 2026 alone. That is the amplitude this structure produces

Sources

Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.