Short sellers lose 20 billion – but don’t give up
Gamestop share on the rise. (Photo: Tada Images / Shutterstock)
No time right now?
Since the beginning of the year, shortsellers who have bet on falling Gamestop prices via short sales are said to have lost $ 20 billion thanks to resistance from Robinhood traders.
A violent dispute between hedge funds and private small investors has broken out on the shares of the US game retailer Gamestop. In the past few weeks, the hedge funds are said to have lost almost $ 20 billion with their bets on falling Gamestop courses. But the shortsellers obviously don’t want to give up and are holding onto their positions. Meanwhile, the share presented itself with a strong up and down on Friday.
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Short sellers: 8 billion minus in one day
According to the figures of the data analysts at S3 Partners, shortsellers burned eight billion dollars on Friday alone because of the rising prices of the Gamestop share. Since the beginning of January, the losses add up to $ 19.75 billion. The reason for this is not least of all share purchases by millions of small investors who have organized, among other things, in the Reddit forum Wallstreetbets. By pushing the share price, they want to force the hedge funds, which bet on falling prices, to make losses.
The Gamestop share, which was still well below three euros in April 2020, has risen to as much as 483 dollars in the past few days. However, it is subject to strong fluctuations. So also today. The stock had traded at $ 193.60 on Thursday and restarted at $ 381.40 on Friday morning.
The reason for the price explosion overnight was apparently that broker apps like Robinhood were meanwhile available again after dropouts. The trade is currently through Robinhood according to CNBC however further restricted. Gamestop traders can therefore buy a maximum of one share. In the course of the day, however, the Gamestop share fell to $ 256.62. Just before trading closes on Friday afternoon, New York time, the stock is hovering around $ 320.
Meanwhile, it is not to be expected that the volatility of the particularly targeted stocks such as Gamestop, AMC or Nokia will calm down again in the coming days. The shortsellers are apparently holding onto their positions and are hoping for prices to fall again soon. According to CNBC hedge funds that abandoned their short positions would quickly be replaced by others. The rate of short bets is said to have been reduced by only eight percent. Meanwhile, the Reddit traders are already orienting themselves further and have now set their sights on the crypto currency Dogecoin.
