Hedge Fund Tech Unwind Deepens as Walleye Restructures Following October Losses

Walleye Capital is restructuring its equity long-short division and returning investor capital after a 5.9% drop in October 2026, marking its worst monthly loss since March 2020. The decision comes amid widespread tech equity selling, with hedge funds shedding roughly $20 billion in technology shares over two weeks according to Goldman Sachs data. The resulting selloff hit major semiconductor positions, sending Advanced Micro Devices down 17.26%, Micron Technology down 17.46%, and KLA down 13.35%, while the Nasdaq 100 slid 6.4% in its steepest single-session drop since early 2020.