You remember what I said about long gamma being cool? Well short gamma is terror. If the market moves against you, you will always have to do what you do not want to: shift your positions to neutral. In a falling market you are suddenly long; in a rising market you are short.
We have already covered the long side of the market and deduced that things get a bit sticky there because market makers have to sell when markets rise and buy when markets fall. The opposite is now true on the downside. With markets gathering speed towards one of the lower inflection points, the same market makers who had long gamma on the upside now have to compensate for their short gamma positions, which actually means they have to sell when markets are low, sell a bit more when they get lower, and sell a shitload when the market tanks. What used to facilitate a sticky market on the top is now cause for a very slippery market on the bottom.
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