Wintermute ramps up its short positions on cryptocurrencies, with its short exposure on Hyperliquid rising to $191 million.

AI content detection firm Originality.ai recently released a study analyzing 2034 recently published religion and faith-related books sampled from Amazon, finding that 1272 of them, or roughly 63%, were judged as "likely AI-generated". Among these, books on witchcraft, Hinduism, and Taoism had the highest proportion of AI-generated content, reaching 78%, 76%, and 74% respectively. Researchers also found that among the witchcraft-related books flagged as AI-generated, around 53% of verifiable factual claims may be incorrect. However, the firm emphasized that AI detection results only represent the probability that a text is "likely written by AI" and are not final conclusions. Since different AI detection tools may produce false positives or even conflicting results, the relevant findings remain subject to some debate.

According to CME’s FedWatch Tool, the probability that the Federal Reserve will hold interest rates steady in September is 59.0%, while the chance of a cumulative 25 basis point rate hike is 41.0%. For October, the likelihood of the Fed keeping rates unchanged stands at 46.6%, the probability of a cumulative 25 basis point hike is 44.8%, and the probability of a cumulative 50 basis point hike is 8.6%.

ZeroHedge published an article noting that the phased peak in trading for chip and storage stocks landed exactly on the day when Total Return Swap (TRS) financing costs hit an all-time high. The outlet argues that the rally narrative surrounding AI, chip, and storage sectors may have masked heavy leverage-driven factors. Institutions including Situational Awareness used tools like TRS to execute highly leveraged trades, which further amplified volatility in related assets once the market shifted. Data shows that Situational Awareness previously faced sharp drawdowns from its highly leveraged positions and was forced to offload a large chunk of tech stock holdings, signaling that the rally in some hot chip and AI trades may not be entirely fundamental-driven.

This week, bond investors will closely monitor the speech by Federal Reserve Chair Walsh at Jackson Hole. Markets are looking for his approach to addressing persistent inflation and fiscal issues, with long-term Treasury bonds facing the risk of further sell-offs. Since taking office in May, Walsh has rarely offered forward-looking policy guidance. His speech following the last monetary policy meeting triggered a massive bond market sell-off, underscoring the market’s high sensitivity to his upcoming speech this Friday. Molly Brooks, U.S. rates strategist at TD Securities, said: "I think if he continues to withhold more information as he has done, the market will be disappointed, which could further exacerbate the recent sell-off in long-term Treasuries." Kathy Bostjancic, chief economist at Nationwide, said factors weighing on the bond market remain, including fiscal concerns, inflation, and uncertainty over the Fed’s policy responses. Dhiraj Narula, rates strategist at HSBC, noted this gives Walsh an opportunity to reassure investors by clarifying his policy outlook. He said: "In our view, if Chair Walsh can offer some assessment of underlying inflation pressures, that could be enough to lower the term premium tied to uncertainty."

According to Reuters, Tether’s bitcoin mining farm project in Uruguay has been shut down due to a power supply contract dispute with local state-owned power company UTE. The project’s investment is estimated at around $120 million. The two sides hold differing views on the contracted power supply volume: Tether regards the figure as a minimum guaranteed supply, while UTE considers it a cap on power delivery. As no new agreement was signed and power fees fell into arrears, UTE cut power to the two mining sites on July 25, 2025. Tether subsequently ended its local operations and laid off most of its staff. The Uruguay project was once seen by Tether as the "first step" in its push into the South American bitcoin mining market. However, Tether continues to expand its regional energy and mining footprint; it previously acquired a 70% stake in renewable energy firm Adecoagro and plans to use its surplus power for bitcoin mining.

DeFi fixed-rate lending protocol Term Finance’s vault fell victim to a governance attack, with blockchain security firms PeckShield and CertiK estimating losses of roughly $8.5 million. The attacker allegedly transferred approximately 2,843 ETH and $1.68 million in USDC, converting the USDC to DAI. The attack targeted Term Strategy Vaults built on the Yearn V3 architecture, though Yearn clarified the vulnerability stemmed from Term’s custom governance mechanism deployed on the vaults’ outer layer—standard Yearn vaults were not impacted. Notably, Term’s vault governance transactions originally featured a 7-day timelock and allowed LP votes to veto changes, but these protective measures failed to prevent the attack. Prior to the incident, Term’s vaults held a total value locked (TVL) of around $12.45 million; the loss accounts for roughly 68% of the vaults’ total TVL. Term Labs is still investigating the specific attack path.