Japan retail traders are capitulating hard.

Kioxia margin longs cut in half over the past month. Entire Japanese equity market saw ¥624.8B (~$4.2B) in margin longs liquidated in just one week—biggest flush in 2 years.

This is what distribution looks like when weak hands get shaken out. Smart money watches retail panic sell before re-entering.

If you're still holding bags in overleveraged positions, this is your wake-up call. Risk-off mode across Japanese equities is real.