Posted on 01/29/2021 3:45:29 PM PST by TigerClaws
The astronomical rally in GameStop has imposed huge losses of nearly $20 billion for short sellers this month, but they are not budging.
Short-selling hedge funds have suffered a mark-to-market loss of $19.75 billion year to date in the brick-and-mortar video game retailer, including a nearly $8 billion loss on Friday as the stock kept ripping higher, according to data from S3 Partners.
Still, short sellers mostly are holding onto their bearish positions or they are being replaced by new hedge funds willing to bet against the stock. GameStop shares that have been borrowed and sold short have declined by just about 5 million over the last week, marking an 8% dip in the short interest, according to S3. Most of the short covering occurred on Thursday, when the stock fell for the first time in six days.
What to know about Robinhood’s emergency cash situation “I keep hearing that ‘most of the GME shorts have covered’ — totally untrue,” said Ihor Dusaniwsky, S3 managing director of predictive analytics. “In actuality the data shows that total net shares shorted hasn’t moved all that much.”
“While the ‘value shorts’ that were in GME earlier have been squeezed, most of the borrowed shares that were returned on the back of the buy to covers were shorted by new momentum shorts in the name,” Dusaniwsky added in an email.
Shares of GameStop, along with other heavily shorted stocks, spiked once again Friday, after Robinhood said it was resuming limited trading of previously restricted securities. The gain pushed GameStop’s rally this week to over 400% and this month to more than 1,600%.
The video game stock has been the star of the show on the WallStreetBets Reddit forum, whose membership has grown rapidly to over 5 million. A wave of day traders continued to encourage each other to pile into GameStop’s shares and call options, creating a massive short squeeze that inflicted pain for hedge funds betting against the stock.
The borrow fee on GameStop’s stock — or the cost-to-borrow shares for the purpose of selling them short — jumped to 29.32% on existing shorts and 50% on new short positions, S3 said.
“If most of the shorts had covered, we would not be seeing stock borrow rates at these high levels — by now you would be able to borrow GME stock at single digit levels due to an increase in the lendable stock loan supply due to borrowed shares being returned after all the ‘supposed’ buy-to-covers,” Dusaniwsky said.
GameStop remained the most-shorted name in the market as short interest as a percentage of shares available for trading stands at 113.31%, S3 said.
‘You’ve won’ — Cramer tells investors to take home run and sell GameStop Short selling is a strategy in which investors borrow shares of a stock at a certain price in expectations that the market value will fall below that level when it’s time to pay for the borrowed shares.
Was Yellen confirmed?
https://mobile.twitter.com/POTUS/status/1355292815203454980
How’d she get past the questioning given her “speech fees”?
Shorts are trying to hang in there!
HOORAY deplorable smalls! Keep POUNDING.
Don’t you love fair-weather capitalists? All about the free market until it goes against them and then WAAAAAAAAAAAAHHH!
Eggs Ackley. R.I.P. FReeper (IIRC)
"Yes, I did, senator."
Mitch walked over and gave her a high five. "Way to go, girl!"
Castrate the shorts
It’s not a loss until they are forced to close out the position due to a margin call.
Many of the short sellers are still hoping the people keeping the price up will eventually fold.
HOORAY deplorable smalls! Keep POUNDING.
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You bet.... HOLD! HOLD!! HOLD!!! Hold!!!!
https://www.youtube.com/watch?v=iDVuQi4gdtk
And in the after hours trading, it looks like they are doing it.... https://www.marketwatch.com/investing/stock/gme
I know everyone wants to root for the underdog against the big evil empire .
But you better keep a close eye on your 401ks.
This could have a catastrophic ripple effect...and Biden can’t handle it.
It would be glorious to see complete capitulation by the short selling hedge funds.
I’m glad the billionaire hedge funds are getting creamed. They pick on companies to destroy and couldn’t care less about the misery they cause. It’s simply to make as much money as possible. Clean them out!!
Although I don’t see Eggs on the wall, out spirit FReepers are still working with us..
https://freerepublic.com/memorial/memorial.htm
Buy buy buy!!!
There is just something about a bunch of commie leftists loosing their a$$ at their own rigged game. It just warms my heart.
The House is never suppose to lose. That's not the way they rigged the game.
I hadn’t thought about Eggs in a long time.
Robinhood is either insolvent or close to insolvent. They are limiting purchases of stocks like Starbucks.
What do you think that is going to look like as this whole thing is unwound?
Why is Robinhood insolvent? (Legitimate question from a novice in stock trading)
I think Robinhood is limiting trades of non targeted stocks as a defense of plausible deniability that they were directly involved in market manipulation. In other words they are trying to muddy the waters to claim they were only trying to protect the little guy. All I can say is good luck with that.
I have already predicted this will be the end of Robinhood.
The CEO is going to be lucky to stay out of prison. Somebody is going to have to take one for team commie and he is the most likely candidate and front runner.
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