According to Bloomberg, amid the AI stock trading frenzy in Asia, Barclays has reached its financing limit for hedge fund clients and is borrowing capital quotas through an internal auction mechanism to sustain loan expansion. Meanwhile, traders at several banks, including Goldman Sachs, are encouraging hedge fund clients to hold more short positions to reduce balance sheet utilization on their prime brokerage books. However, Goldman Sachs prime brokerage data shows that for the week ending October 18, U.S. long/short hedge funds' net leverage decreased by 3.2 percentage points to 43.7% (a five-year low), but this decline was almost entirely due to an increase in short positions (up 8.0 percentage points to 85.1%), rather than a reduction in long positions. The overall gross leverage ratio was approximately 214%, an increase rather than a decrease from the previous period, with UBS traders warning that the market remains vulnerable to further deleveraging.