UBS trading desk trader Torsten Sippel noted in his latest weekly report that last week's US stock market was not a broad sell-off, but rather a targeted position reset, with its trajectory highly similar to the deleveraging event triggered by the AI quantitative fund Situational Awareness several months ago. The report stated that the AI and momentum sectors continued to be under pressure, with the storage sector falling 16% in a single week, and funds rotating towards defensive and less crowded sectors. Hedge fund net exposure has fallen to the 30th percentile of its five-year history, but gross exposure remains above the 90th percentile, indicating a market landscape that is "fragile rather than outright bearish" and still faces the risk of further deleveraging.