GameStop short-sellers losing BILLIONS as wildly popular meme stock soars
Those betting on the decline in price of GameStop and AMC Entertainment Holdings shares lost another $670 million on Wednesday, data traced by financial analytics firm S3 Partners shows.
Since the beginning of the year, short-sellers have lost around $8 billion betting against the two companies.
The video-game retailer and movie-theater chain captured headlines earlier this year after a group of stay-at-home traders took to Reddit’s WallStreetBets forum to coordinate massive short squeezes that spiraled into a speculative buying frenzy sweeping the market.Also on rt.com New York attorney general ‘reviewing’ Robinhood case after class action suit accuses trading app of ‘market manipulation’
Back then, shares of GameStop soared as high as 483%, closing out January with a 1,625% rally, while AMC shares surged 277%. As a result, Wall Street hedge funds that shorted the stock lost billions.
According to Ihor Dusaniwsky, S3 Partners’ managing director of predictive analytics, mark-to-market losses of GameStop short-sellers amounted to nearly $383 million on Wednesday, while AMC short-sellers were dealt mark-to-market losses of $291 million. Thus, year-to-date losses totaled $6.7 billion and $1.3 billion respectively.
Bearish bets have reportedly remained steady, as nearly one-fifth of available GameStop and AMC shares currently sold short, according to data compiled by S3 Partners.
For more stories on economy & finance visit RT's business section