Brazil's EWZ dropped more than 27% in 24 hours, with its long-short ratio surging to 4:1, as suspected bottom-fishing capital enters the market.

According to TradingBeats, the Brazilian stock ETF contract EWZ deployed by Trade.xyz on Hyperliquid is currently priced at $32.72, down approximately 27.22% in 24 hours, with a trading volume of around $100 million and open interest of $32 million. Over the past 24 hours, total liquidations for EWZ across the network reached $14.9167 million, including $14.7275 million in long positions and $189,200 in short positions. The long-short ratio has risen to 4:1, indicating bottom-fishing capital is entering the market, and EWZ has rebounded 5.3% in the past five hours. This decline coincided with the outcome of Brazil’s general election, reversing the market’s previous betting trend. At 08:08 Beijing Time today, Brazil’s Superior Electoral Court confirmed Luiz Inácio Lula da Silva (Lula)’s re-election victory. Previously, the market had bet on right-wing candidate Flávio Bolsonaro winning, expecting him to push for fiscal tightening, lower financing costs, and support the Brazilian real’s strength. Reuters reported that as of last Friday, Brazil’s stock market had risen nearly 7% from before the first round of voting, and the real had appreciated nearly 5% against the U.S. dollar. With Lula’s re-election, this trading logic is now being re-evaluated. Alejo Czerwonko, Chief Investment Officer for Emerging Markets at UBS Global Wealth Management, stated that the market rally after the first round of voting could be largely unwound, and credible commitments to fiscal discipline and a path to debt stability will need to be demonstrated going forward.