David Faber of CNBC said he’s hearing corporates have been short forex volatility as part of their hedging strategies. This sounds highly, highly suspect. Corporations are big buyers of options to hedge exposures, but I’ve never heard of them selling volatility, essentially selling both puts and calls, expecting the price of options to fall. They usually take a directional view to hedge fairly predictable cash flows.
If they (or anyone) was short a large amount, it could explain some of the price action. If you are short options you have what traders call “negative gamma”. That means you have to sell when prices are falling and buy when prices are rising, an unenviable position to be sure.