Which firms shorted GameStop?
Melvin Capital, hedge fund torpedoed by the GameStop frenzy, is shutting down. The firm lost billions of dollars as it scrambled to cover its bets against the video game retailer that became a darling of retail traders. As a subscriber, you have 10 gift articles to give each month. Anyone can read what you share.
In terms of dollar gains over the past 30 days, the most profitable shorts are Tesla, where shorts are up almost 28 percent and have made $6.1 billion during that time; Amazon, up 33 percent for a gain of $3.3 billion; Apple, up 16 percent for a gain of $2.6 billion; Block, up 45 percent for a gain of $2 billion; ...
| Stockholder | Stake | Shares owned |
|---|---|---|
| The Vanguard Group, Inc. | 7.71% | 5,871,283 |
| BlackRock Fund Advisors | 6.34% | 4,828,648 |
| SSgA Funds Management, Inc. | 2.21% | 1,684,263 |
| Geode Capital Management LLC | 1.04% | 792,166 |
Here it comes now: #Citadel, a hated hedge fund, has been shorting companies like AMC/GME and others. However, in January, these companies received massive support from the Reddit community buying these stocks in a big way and driving up the stock price.
GME's Short Squeeze Setup
Short interest: The latest data from Morningstar point out that 22.69% of GameStop's entire stock float was being shorted. That's a 7% increase compared to the last official data from April 13, when GameStop had 14.13 million shares shorted.
2 of the biggest hedge fund victims of GameStop's short-squeeze suffered more losses in May, report says. Melvin Capital and Light Street Capital's funds suffered further losses in May, the FT reported. Hedge funds lost about $6 billion since the start of May over betting against meme-stocks.
Although less intense than at the beginning of June, GME shares remain highly shorted. And borrow rates are high enough to squeeze short sellers on any spikes in buying volume.
The hedge fund Citadel pumped billions of dollars into Melvin Capital after that fund's bet against GameStop went bad, leading to huge losses. Now, Citadel is taking some of its money back.
This year, according to the Statista Research Department, PubMatic, Inc. (NASDAQ: PUBM) stands at the top of the most shorted stocks with a 50.82% share of float shorted. PubMatic, Inc. (NASDAQ: PUBM) is followed by Ontrak, Inc.
Most heavily shorted stocks worldwide June 2022. As of June 2022, the most shorted stock was for the American cosmetic, skin care, fragrance, and personal care company Revlon Inc., with 73.27 percent of their total float having been shorted.
What is the most shorted stock in history?
Meta Platforms Inc. lost $232 billion in one day, making it the largest single-day loss in stock market history. In 2021, GameStop(GME) was the subject of a remarkable short squeeze that caused some hedge funds to lose billions of dollars.
GME largest holders
As reported by Yahoo Finance, the company currently has a float of 56 million shares. Of the total, 36% is owned by the public, 45% by institutions and 19% by insiders — the latter includes the company's officers, directors, and those with access to non-public company information.
More recent data from May are not yet official, but GameStop's shareholders estimate on Reddit that the number of shares locked up through DRS already exceeds 14 million shares.
| Shares Outstanding | 302,961,152 shares |
|---|---|
| Insider Shares | 48,699,800 shares |
| Insider Ownership | 16.07% |
| Total Insiders | 14 |
One of the greatest short squeezes in history started on a SubReddit, where hundreds of thousands of retail investors banded together to drive the price of GameStop shares up to an all-time high of almost $500. Before the surge, GameStop's stock had been valued at $17.25.
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GameStop Stock Looks to Be Entering a Short Squeeze Set Up.
| Ticker | Company | Price |
|---|---|---|
| GME | GameStop Corp. | $130.73 |
In around 10 trading days, a series of short squeezes occurred making the stock price jump over 15 times, eventually resulting in a stock price as high as $500. A similar trend was seen in AMC Entertainment, a movie theatre chain, where the share prices jumped ~300% on January 27, 2021, closing the same at $19.88.
GameStop Short Sellers Lose $200 Million In August Extending Their Losses As Shorted Shares Continue To Drop.
GameStop Is Still "Squeezable"
The current setup is bullish for GameStop stock investors looking for short squeeze potential. Although less intense than at the beginning of June, GME shares remain highly shorted. And borrow rates are high enough to squeeze short sellers on any spikes in buying volume.
Traders can make huge profits by taking advantage of the short squeezes. If you are looking to benefit from squeezes, you need to know how to trade them correctly. No one knows when a short squeeze is going to happen but by keeping track of heavily shorted stocks you can be alerted when one is starting to take off.
Did the hedge funds cover their shorts?
Hedge funds in both the U.S. and Europe have rushed to cover their shorts, with little appetite to add fresh bearish wagers on the newly underperforming parts of the market like growth equities.
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GameStop Stock Looks to Be Entering a Short Squeeze Set Up.
| Ticker | Company | Price |
|---|---|---|
| GME | GameStop Corp. | $130.73 |
Approximately 140 percent of GameStop's public float had been sold short, and the rush to buy shares to cover those positions as the price rose caused it to rise even further.
If you short a stock at $10, it can't go lower than zero, so you can't make more than $10 per share on the trade. But there's no ceiling on the stock. You can sell it at $10 and then be forced to buy it back at $20 … or $200 … or $2 million. There is no theoretical limit on how high a stock can go.
