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27 May, 2021 11:44

GameStop short-sellers losing BILLIONS as wildly popular meme stock soars

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.

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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.

READ MORE: Reddit investors vs. Wall Street: The GameStop saga (so far) explained

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.

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