Korea revealed a structural transmission mechanism today. The index dropped over 6%. Selling started in strong index-heavyweights, with Samsung Electronics dropping 8.61% and SK hynix dropping 7.66%.

This was a concentrated liquidation event. Their massive index weight triggered non-arbitrage program selling. Program selling transmitted the drop across the index, creating a false signal of broad weakness.

Global traders must separate the source from the transmission. The only remaining question is which global index is architected to fail exactly the same way.