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Hedge Fund Alphadyne Loses $1.5 Billion in Short Squeeze

  • Flagship strategy is down almost 10% this year through July
  • Funds made large wagers on rising rates, U.S. curve steepening
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Hedge Fund Alphadyne Suffers $1.5 Billion Short Squeeze Loss
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Hedge fund Alphadyne Asset Management is one of the biggest casualties from a short squeeze in the global bond market, with its $12 billion macro trading strategy snared in a series of bad bets on rising interest rates.

The investment firm is staring down losses of about $1.5 billion after its hedge funds plunged through July, according to people familiar with the matter. Its flagship Alphadyne International Fund lost about 10% this year. It also manages a leveraged version with about the same amount of assets.