Being hedgefucked happens when someone underestimates people they deem "lesser than"/stupider than themselves, and get royally fucked due to their own hubris, greed, pride, ego, and poor decisions.
Also used as a noun: hedgefuck: the person doing the underestimating and getting hedgefucked.
Comes from the GME saga, where hedge funds
underestimated the power of retail investors, and got taken for
everything they had because they're greedy
pieces of shit that prey on weak publicly traded companies and drive them into bankruptcy for the sake of profit. Basically, retail bends hedge funds over the sink and big-dick-dry-fucks them in the ass.
Read how actually hedgefucked financial institutions are at reddit.com/r/superstonk.