Recently, an interesting phenomenon has emerged in the market.

A leading exchange adjusted the margin requirement for margin trading at the same time — increasing it from 80% to 100%. What does this mean? Simply put: if you want to borrow 1 million to trade, you now need to put up 1 million as collateral, reducing leverage from 1.25x directly to 1x. This restriction applies only to new positions; existing positions remain unaffected. This move is called "gentle discouragement."

Even more interesting is during the call auction period. Multiple major cryptocurrencies simultaneously showed sell orders exceeding 1 billion yuan — this isn't a market crash, but "pressure without smashing." You can feel the rhythm: sell orders flow continuously, but there's no sudden dump. About 20 billion yuan in selling pressure appears simultaneously, as if telling the market: it's time to cool down.

At the same time, regulatory scrutiny of thematic concepts has intensified. Companies involved in commercial aerospace, AI, and other sectors are receiving inquiries and being asked to supplement risk disclosures; some companies with abnormal trading activity have even suspended trading for investigation. What are these actions targeting? It's simple — cracking down on hype, concept trading, and deviations from fundamentals.

**Why are they doing this?**

Margin trading has exceeded 400 billion yuan for two consecutive days, and the margin balance is rising rapidly. Market trading volume has hit record highs, indices are approaching critical levels, and both large-cap and thematic stocks are rising together. In this environment, bubble risks are real — some concept coins have surged sharply in the short term, with valuations seriously inflated, and information disclosure is also irregular.

What is the core logic of regulation? **Risk prevention rather than suppression.** Using leverage regulation + weight-based order suppression + strict oversight of themes, this combination aims to "precisely brake" an overheated market. It's not about slamming the brakes to cause a full-scale correction, but about controlling the pace and guiding the market toward a "slow bull" rather than a "crazy bull."

This is not a new approach. Do you remember the story from 2015? The market crash after the crazy bull run has become a textbook-level risk case. Now, regulators seem to have learned their lesson.

**Where are the current risk levels?**

This is the most critical point. The margin balance accounts for 2.58% of the circulating market cap, with a maintenance collateral ratio of 288.77% — far below the peak levels of 2015. In other words, although margin trading enthusiasm is high, overall risk remains within manageable bounds. Regulatory actions are taken proactively before risks spiral out of control — a standard counter-cyclical adjustment.

So, the brilliance of these measures lies in: not simply "deleveraging" (which would be too crude), but "reducing leverage"; not "crashing the market" (which would be too brutal), but "controlling the rhythm"; not "being bearish" (which is too absolute), but "preventing risks."

In a sense, this sends a clear signal to all participants — there is still room in the market, but the game rules are changing. Those who trade based on fundamentals and manage risks well will continue to do well. But those relying on leverage and hype will face tougher times.