Woofun AI data shows that U.S. margin debt has risen by 54% year-on-year, representing the sixth-largest increase over the past six decades. Tom Lee noted in a CNBC interview that this surge indicates a significant influx of traders borrowing capital to purchase equities.

Historical patterns suggest that such spikes in margin financing balances are typically followed by a six-month market consolidation period. Lee cited the Korean stock market as a comparative case, where 1.2 million brokerage accounts faced margin calls, potentially representing 10% of all adult investor accounts.