Macros cntd:
I can echo these sentiments from a few hedge fund internal calls I've heard that the the big guys are aware of a few blowups (or at least rumors of blowups) or "positions of stress" from the smaller (still many $billions AUM) funds. Due to the big guy's understanding of sizing and positions of their smaller competitors, they're using this information to make trades in an offensive/defensive nature that has nothing to do with reality and we're seeing some of the aftermath like a bully pounding on a little kid and the rest of us watching getting blood splattered on us.
Example: "Top 10 Big Fund has a strong suspicion that Mom's Basement Funds Ltd is long/short out to wazoo on ABC, they're getting slammed with redemptions and/or margin calls, so Big Fund is going to curb stomp them in this current climate because... well, why not?"
I'm not suggesting this is happening everywhere or at a level that's big enough to explain +/- 5% days in the broader markets, but it is happening. On the calls I've heard, the funds aren't even sure themselves if "other funds are actually blowing up" or if this is more of a weird self-fulfilling prophecy, but it would seem to make sense that there are investors looking to pull money out (like during 2008) ASAP, causing some smaller funds to have to force-liquidate, which could further trigger margin calls, triggering forced-selling, etc. UNLIKE 2008 when everything seized up, there's still plenty of flow for the big guys to make money.
I have to keep telling myself that "everything eventually reverts to the mean" and "this too shall pass" but it's hard to see it when you're in the thick of it.