Short sellers of GameStop face $2 billion loss as Meme stock rallies!
The GameStop stock frenzy has led to short sellers losing over $2 billion in just two days, as reported by data firm S3 Partners. Ihor Dusaniwsky, S3’s managing director of predictive analytics, stated that GameStop shorts have seen market value losses of $862 million yesterday and an additional $1.360 billion today. Short selling involves borrowing shares to sell with the intention of buying them back at a lower price later, profiting from the difference.
Short Interest and Short Covering
GameStop’s short interest is currently at $1.920 billion with 63.2 million shares shorted. Dusaniwsky mentioned that short covering continues due to the meme stock resurgence, with AMC also experiencing a drop in short positions by $244 million by midday. AMC shares saw a 37% increase on Tuesday afternoon, with trading also being halted.
Impact on Short Sellers
The ongoing stock frenzy has significantly impacted short sellers, with GameStop and AMC both experiencing substantial losses in market value. This article was originally published on [source].
