The IPO supply wave is a real market risk

The market is near record highs, but a huge wave of new supply could become a liquidity drain.
When massive IPOs hit the market, the money has to come from somewhere.
Funds do not magically create cash. They usually sell what they already own to buy the new names.
That means crowded positions and index-heavy portfolios can become the source of liquidity.
The risk is simple: record highs, record optimism, and record new stock supply all arriving at the same time.
That does not guarantee a crash, but it does make the setup much more fragile than it looks.