People are always in a rush to find a reason for a drop. This chart was sent to me by a group member asking for my opinion, and after looking at it, all I can say is: this is kinda ridiculous. SK Hynix's drop has basically nothing to do with this divorce case! That's because Chey Tae-won doesn’t directly hold SK Hynix shares. He owns about 17.9% of SK Holdings, SK Holdings owns about 32% of SK Square, and SK Square is the largest shareholder of SK Hynix. There are three layers of equity relationships in between, and the court ruling of 944 billion KRW is a cash settlement. Unless Chey Tae-won suddenly loses his mind and starts selling or pledging SK equity on a large scale to raise funds, this matter won’t affect SK Hynix’s fundamentals for now. The real reason behind this round of Korean stock market plunge is the combination of three factors: 1⃣ The market wants answers: When will these hundreds of billions of dollars spent on data centers start making money? So, as soon as upstream cloud providers’ capital expenditures are questioned, the market will first slash the valuation of suppliers with the highest valuations and profit elasticity. SK Hynix happens to tick both boxes. 2⃣ The market expects SK Hynix’s operating profit margin in Q2 to hit 75%. That’s no longer a normal margin for a manufacturing company—it’s basically like printing money to produce memory chips. 3⃣ The Korean market is experiencing a classic deleveraging stampede: foreign investors are selling, margin accounts are forced to reduce positions, and quant funds are cutting positions simultaneously. This massive red candle has already released a lot of panic. If tomorrow’s earnings report doesn’t significantly miss expectations, there’s a high chance we’ll see a rebound!