Investors' risk appetite is clearly weakening:

The volume ratio of leveraged long ETFs to leveraged short ETFs has dropped to about 1.1, hitting a new low since the market bottom on Liberation Day in April 2025.
This indicates that the activity in short-selling trades in the current market has almost caught up with that of long trades.
By comparison, this ratio briefly rose to 3.0 in October last year, when market sentiment was clearly bullish, with large capital inflows betting on higher prices.
Now, this ratio is gradually approaching the low range seen during the 2022 bear market and the 2020 pandemic shock, when investors generally expected the market to continue falling.
Looking further back, during the most panic-stricken phase of the 2008 financial crisis, this ratio fell to 0.4, meaning the volume of short ETF trades was about 150% higher than long ETF trades.
Does this current situation indicate that panic has already become crowded, even approaching a stage of extreme levels?