May 28, 2024

Image for article titled GameStop short sellers have lost more than $2 billion as the meme stock rally continues

Photo: Brendan McDermid (Reuters)

The meme stock rally triggered by the return of Roaring Kitty on social media has cost GameStop short sellers $1.36 billion, according to data firm S3 Partners.

Ihor Dusaniwsky, S3 managing director of predictive analytics, wrote on X: “After being down $862 million in mark-to-market losses yesterday, $GME [GameStop] shorts are down another $1.36 billion in mark-to-market losses today.”

On Tuesday afternoon, as trading was halted, GameStop was up 21%.

Short-selling is an investment strategy in which an investor borrows shares and sells them, then buys them back later at a lower price, returns the borrowed shares (plus interest) to the lender, and profits off the difference.

Dusaniwsky added that GameStop’s short interest is $1.92 billion, and 63.2 million shares have been shorted.

“We are seeing continued squeeze-related short covering due to the rebirth of the meme trade,” he wrote.

Additionally, he wrote that AMC shorts are down $244 million in midday losses after falling $127 million on Monday.

After being halted, AMC stock was trading over 37% higher Tuesday afternoon.

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