[Hedge fund short bets approach five-year high; Goldman Sachs warns of potential “short squeeze” risk in U.S. stocks] October 22 (Xinhua): Hedge funds have significantly increased their short positions in stocks this month, pushing bearish bets to nearly the highest level in five years. If the U.S. stock market rebounds, the risk of a violent short squeeze will also increase. Goldman Sachs' prime brokerage unit said the ratio of short selling to long buying was about 5 to 1. The level of short leverage on its client books is in the 99th percentile over the past five years. Meanwhile, fundamental long-short equity funds' net leverage, a measure of how much long exposure exceeds short exposure, is near a three-year low, even as their total leverage has risen. Goldman Sachs said any subsequent catalysts for tech stocks could force short covering.