According to Woofun AI, leveraged funds rapidly rebuilt their short positions on the eve of the Federal Reserve's policy decision, adding a cumulative 1,669 Bitcoin (BTC) short contracts as market risk aversion notably intensified.

Data compiled by Woofun AI shows that during the week ending September 8, hedge funds and money managers regulated by the U.S. Commodity Futures Trading Commission (CFTC) increased their net short positions by 1,668 Bitcoin across four regulated Bitcoin futures markets.

The Chicago Mercantile Exchange (CME) led this trend, with its 5-Bitcoin contracts seeing 888 new shorts and 616 new longs, resulting in a net increase of 272 short contracts, equivalent to 1,360 Bitcoin and accounting for 81.5% of the week's total movement.

In markets outside the CFTC's alternative position classification, short positions across the four contract markets grew by 4,965 Bitcoin while long positions increased by 3,296 Bitcoin. This imbalance amplified the overall net short scale, yet the two-way growth reveals a complex positioning structure, indicating that capital operations are not purely bearish trades but involve more refined risk management strategies.

Market expectations for the upcoming Federal Reserve meeting have profoundly influenced investors' risk-taking behavior. Although the 1,669 Bitcoin position increase shows funds were positioned ahead of the event, existing data is insufficient to confirm this as speculative betting on Bitcoin declining after the Fed's decision is announced.