Record Foreign Selling and Borrowed Money Fueled Asia's Chip Stock Crash

Foreign investors sold Asian stocks faster than any time in 16 years, per Reuters. In South Korea, investors owed a record $25 billion in borrowed money. When prices started falling, lenders forced them to sell, deepening an 8% Kospi drop on July 2 and halting trading for 20 minutes. Borrowing turned a bad day into a crash.