Brazilian stocks EWZ plunged over 27% in 24 hours, with the current long-short ratio rising to 4:1, suspected bottom-fishing funds entering the market.

BlockBeats news, October 26 — According to monitoring by TradingBeats, the Brazilian stock ETF contract EWZ deployed by Trade.xyz on Hyperliquid is currently quoted at $32.72, down about 27.22% in 24 hours, with a trading volume of approximately $100 million and open interest reaching $32 million.

Over the past 24 hours, total EWZ liquidations across the network reached $14.9167 million, of which long liquidations totaled $14.7275 million and short liquidations totaled $189,200. The current long-short ratio has risen to 4:1, suggesting dip-buying funds are entering, and EWZ has rebounded 5.3% over the past 5 hours.

This round of decline coincided with the conclusion of Brazil's election results, as the market's previous betting direction began to reverse. At 08:08 Beijing time today, Brazil's Superior Electoral Court confirmed Lula's re-election. Previously, the market had bet on right-wing candidate Flávio Bolsonaro winning, expecting him to push fiscal tightening, lower financing costs, and support a stronger real.

Reuters reported that as of last Friday, Brazilian stocks had risen nearly 7% from before the first round of voting, and the real had appreciated nearly 5% against the dollar. After Lula's re-election, this trading logic faces reassessment.

Alejo Czerwonko, Chief Investment Officer for Emerging Markets at UBS Global Wealth Management, believes the post-first-round rally could largely unwind, and that a credible commitment to fiscal discipline and a path to debt stabilization still need to be seen.