Why TIPS/TIIS/Real Return Bonds Have Fallen so Much

Interesting article from morningstar explaining that hedge funds were borrowing short to buy TIPS long. So when the credit dried up, they had to sell TIPS to pay back their loans (i.e. deleverage). The consequence being that the price of the bonds really dropped. A similar phenomenon is also undoubtedly occurring with share prices.

I remember a similar thing happening to long bonds when the yield curve reversed, in the 90s I think it was. That's why I think it's better to buy bonds and hold them to maturity, especially G7 government bonds, for which the risk of default is pretty non-existent.