Goldman Sachs' prime brokerage division has reported that hedge funds have been offloading U.S. tech stocks at an unprecedented rate over the past two months. According to a team led by Vincent Lin, hedge funds were net sellers in the tech sector for six out of the last eight weeks, resulting in a 10% reduction in the cumulative market value of their positions. This marks the largest sell-off in the tech sector since the data series began over a decade ago. The report highlights significant declines in the semiconductor, memory chip, and AI infrastructure sectors, indicating that tech investors are reducing long positions and showing signs of capitulation selling. The sustained volatility and steep declines in these areas have driven the massive sell-off since early June.