{"url":"https://www.zerohedge.com/the-market-ear/2025-disguise-same-setup-same-squeeze","title":"2025 Disguise: Same Setup, Same Squeeze","domain":"zerohedge.com","imageUrl":"https://images.pexels.com/photos/7947707/pexels-photo-7947707.jpeg?auto=compress&cs=tinysrgb&h=650&w=940","pexelsSearchTerm":"stock market rally","category":"Business","language":"en","slug":"a0f1a0c2","id":"a0f1a0c2-ae7a-4013-bd9a-57b0df6ce365","description":"Current market rally replays 2025's pattern of violent selloff followed by positioning reset and sharp recovery.[[1]](https://www.zerohedge.com/)[[2]](http","summary":"## TL;DR\n- Current market rally replays 2025's pattern of violent selloff followed by positioning reset and sharp recovery.[[1]](https://www.zerohedge.com/)[[2]](https://www.zerohedge.com/the-market-ear/2025-disguise-same-setup-same-squeeze)\n- Hedge funds and CTAs show similar deleveraging then re-leveraging as in prior year, fueling liquidity-driven bounce.[[1]](https://www.zerohedge.com/)\n- Setup suggests rally may extend if 2025 script holds, but flows now dominate over fundamentals.[[1]](https://www.zerohedge.com/)\n\n## The story at a glance\nThe Market Ear argues markets are repeating 2025's playbook: a sharp selloff wipes out positioning, then liquidity sparks a face-ripping rally. Hedge funds, CTAs, and other players mirror last year's deleveraging and re-risking. This is reported amid recent equity bounces after de-risking, as part of ongoing flow and squeeze analysis in 2026.[[1]](https://www.zerohedge.com/)\n\n## Key points\n- Violent selloff leads to positioning collapse across hedge funds and CTAs, matching 2025 dynamics.[[1]](https://www.zerohedge.com/)\n- Rally fueled by liquidity injection and re-leveraging, turning de-risking into chase higher.\n- Script feels familiar because current flows and technicals align exactly with 2025's post-selloff reversal.[[1]](https://www.zerohedge.com/)\n- Setup from heavy shorting or light longs creates squeeze potential as buyers pile in.\n- Analogy implies move far from over, but dependent on continued flow momentum not fading.\n\n## Details and context\nMarkets went through aggressive de-risking recently, with outflows and shorting dominant, much like early 2025 before reversals. Positioning washed out, vol elevated, setting stage for systematic buying from CTAs and options flows – same as last year when squeezes accelerated.[[1]](https://www.zerohedge.com/)\n\nThis pattern shows in tech and broader equities, where panic selling flipped to panic buying in weeks. 2025 saw similar after consolidation or shocks, leading to multi-month gains until crowded.\n\nRisk is fragility building under flows; if liquidity pauses, chase could stall like late-cycle 2025 phases.\n\n## Why it matters\nRepeating 2025 dynamics means short-term upside from squeezes and flows, but highlights vulnerability to flow reversals over economic shifts. Investors face forced re-risking, amplifying gains or losses based on positioning, not just earnings. Watch positioning metrics and CTA behavior for signs rally extends or tops, though past patterns don't guarantee repeats.[[1]](https://www.zerohedge.com/)","hashtags":["#markets","#trading","#squeeze","#positioning","#liquidity"],"sources":[{"url":"https://www.zerohedge.com/the-market-ear/2025-disguise-same-setup-same-squeeze","title":"Original article"},{"url":"https://www.zerohedge.com/","title":""}],"viewCount":2,"publishedAt":"2026-04-18T17:49:01.998Z","createdAt":"2026-04-18T17:49:01.998Z","articlePublishedAt":"2026-04-18T16:15:56.000Z"}