Aug 10, 2026 – 4.30pmHedge funds are circling two of the buzziest stocks on the Australian sharemarket just as retail investors, who were largely responsible for pumping up their share prices, have come down with a case of the jitters.Depending on when an investor first traded imaging software company 4DMedical, or defence tech firm DroneShield, they might have made big money or have been left nursing brutal losses, such is the boom-and-bust trajectory of two of the ASX’s most hyped-up companies.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Hedge funds circle hyped-up ASX stocks that make ‘Space X look cheap’
Short sellers are targeting 4DMedical and DroneShield just as retail traders have begun to sell down their stakes.
TL;DRAI
Hedge funds circle 4DMedical and DroneShield, two hyped ASX stocks now unwinding as retail investors face steep losses. The boom-bust pattern in speculative tech reflects a classic sentiment-reversal cycle where smart money capitalizes—essential for understanding volatility dynamics and downside-protection strategies in growth markets.
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