GME Short sellers have already lost $19bn, however many Are Still holding in Hopes of price going down!
Short sellers face an estimated $19bn in losses due to the short squeeze, though many are still holding out hope that the price will drop before they are forced to close out their short positions.
Short sellers are holding onto their bets that GameStop’s share price will drop despite an estimated $19bn loss facing other holders of the stock.
“I keep hearing that ‘most of the GME shorts have covered’ — totally untrue,” Ihor Dusaniwsky, S3 managing director of predictive analytics, told CNBC. “In actuality the data shows that total net shares shorted hasn’t moved all that much.”
According to market data, most short sellers have held onto their bets against the struggling brick-and-mortar video game retailer. Over the last week, the short interest only fell 8 per cent. There have even been new hedge funds moving in to bet against the company despite the extreme inflation in the stock’s price driven by Reddit investors.
GameStop’s shares soared again on Friday, jumping 100 per cent by the market’s open, as under-fire investment app Robinhood partially reversed its decision to restrict trading of its stocks and reportedly secured €1bn from its backers. Despite GameStop’s explosive open, the rest of the market lagged.
Robinhood – which says its “mission is to democratise finance for all” – then decided to block users from buying GameStop shares, which it said was due to “significant market volatility”, prompting a fierce backlash, including from members of the US Congress as politically diverse as Ted Cruz and Alexandria Ocasio-Cortez, who signalled their support for a congressional hearing.
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