Opinion: Despite today's violent rebound, the South Korean stock market struggles to quickly regain its previous high.

July 31st, well-known US stock trader Ariel Hernandez posted a message stating that at the end of July, the Korean stock market's AI semiconductor stocks experienced a sharp drop due to excessive leverage, leading to a brutal leveraged wipeout where some traders were liquidated, making it difficult for the market to quickly V-shaped rebound to the high point of several weeks ago.

Ariel Hernandez referenced the earlier silver market leverage liquidation case this year to illustrate that once such a trend forms, it often comes with an increase in selling pressure and a decrease in the willingness of new buyers to use leverage. Typically, there will be no quick reversal, and previous highs often take several months or years to approach.