To be honest, the recent decline is indeed shocking, especially since there is no obvious black swan event.

One possible reason is that in the current market with relatively scarce liquidity, some funds may have used the story of "The Wolf is Coming" - the final ruling of the Mentougou compensation plan - as an opportunity to arrange a large number of short orders.

It also coincided with Germany's help in the market crash, which intensified the selling pressure in the market. Coupled with the market's concerns about liquidity, it may make it easier for short-selling forces to push prices down and make easy profits.