Hedge funds are pushing leverage limits again. Their gilt repo borrowing just hit near-record territory—hovering around £100 billion. That's a red flag for market leverage.

What does this mean? When institutional players pile into repo markets at this scale, they're essentially amplifying their positions. More leverage equals bigger bets. And bigger bets mean sharper moves when things unwind.

The latest financial stability report flagged this buildup. It's not panic time yet, but the warning lights are flashing. High leverage in traditional finance often ripples into crypto markets—especially when liquidity tightens or volatility spikes.

Keep an eye on these flows. Repo market stress has a history of triggering broader market turbulence.

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ZKProofster

· 7h ago

ngl, this is exactly what happens before everything goes sideways. £100bn in repo just screaming "we're fine" while actually not being fine at all... technically speaking, the math doesn't check out when leverage stacks like this.

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MrDecoder

· 7h ago

Here they come again, these hedge fund people really just can't learn, playing with leverage on the edge of a crash and still not knowing when to turn back.

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LiquidityNinja

· 7h ago

Here we go again with this trap in the repo market, it's always the same script.

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ForumMiningMaster