GameStop Short Sellers Refuse To Surrender Despite Nearly $20 Billion In Losses
GameStop short-sellers are reportedly refusing to admit defeat – despite having lost nearly $20 billion.
The huge loss comes as many investors bet against GameStop, but it came to bite them after Redditors took matters into their own hands and caused the gaming company’s shares to soar in price.
For those of you who are very behind the times, we’ve broken it down for you here.
Basically, the more GameStop’s value declined, the more hedge fund managers stood to make.
According CNBC News, short-selling hedge funds have suffered an eye-watering mark-to-market loss of $19.75 billion year to date. $8 billion of this was accumulated today, January 29, as the stock kept getting higher and higher.
Despite the huge losses, short-sellers are continuing to hold on to their positions or are being replaced by new hedge funds willing to bet against the stock.
While there were rumours of GameStop’s short stock having recovered, Ihor Dusaniwsky, S3 managing director of predictive analytics, said otherwise.
In an email to CNBC, Dusaniwsky said, ‘I keep hearing that ‘most of the GME shorts have covered’ — totally untrue. In actuality the data shows that total net shares shorted hasn’t moved all that much.’
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