On October 23, the Tokyo Stock Exchange (TSE) released a batch of erroneous data, sparking widespread confusion in the market. The faulty figures indicated a notable drop in the leveraged long positions of Kioxia Holdings. This misinformation led some investors to mistakenly believe that the selling pressure on Kioxia's stocks had subsided. However, the TSE rectified the data the next day, disclosing that as of October 20, Kioxia's outstanding margin trading positions had, in fact, surged to 46.94 million shares. This represented an increase of 15.65 million shares from the previous day, contrary to the initial announcement of a decrease. Data for certain other stocks was also duly revised. As Kioxia's margin trading positions continued to pile up, investor anxiety escalated. Amid a broad sell-off in artificial intelligence-related stocks, Kioxia's share price took a nosedive. Investors who had borrowed funds to purchase shares, anticipating a price hike, now faced the peril of selling at a loss. Tomoichiro Kubota, the chief market analyst at Matsui Securities, highlighted that the erroneous data had misled investors into thinking that Kioxia's outstanding margin trading positions had plummeted significantly and that the share price might be on the verge of bottoming out. Yet, in reality, the margin trading positions remained elevated, and there were no indications of a share price rebound as of yet.
