Dennis Gartman, chairman of the Akron University Endowment Investment Committee, argues that the problem for hedge funds is not over yet, saying the public has done “spectacular” work in exploring an area of the market that the “big ones” have conquered. .
The losses of GameStop short sellers are increasing with the stock price.
Short sellers were facing more than $ 19 billion in combined losses at GameStop on Friday morning, according to an estimate provided to Fox Business by financial data service Ortex.
These losses were mainly driven by retail investors on Reddit’s WallStreetBets subreddit, which has boosted GameStop’s share price by more than 1,700% since the beginning of the year, squeezing short sellers.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP CORP | 325.00 | +131.40 | + 67.87% |
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Short sellers, including Melvin Capital Management and Citron Research, have closed their positions at GameStop since the start of the tightening.
The losses of other short sellers continue to increase, even as more investors close their short positions. Ortex estimated that the number of shares sold fell from around 79.5 million on January 13 to 38.6 million on Friday morning.
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And short sellers have lost more than $ 70 billion in American companies so far this year, Ortex wrote in a blog on Thursday.
The company wrote that the short squeeze powered by social media shows “a shift in the balance of power” in the stock market. The new technology has made information available to a wider audience that was previously only accessible to professional investors.
“Regardless of the final result, the GameStop saga points to an ever greater democratization of markets, with fairer access and more equitable competition conditions,” wrote Ortex in the post. “The advantage of the information that has maintained the status quo for so long is disintegrating and this has far-reaching consequences for investments, markets and the industry itself.”
Short sellers were facing more than $ 19 billion in combined losses at GameStop on Friday morning, according to an estimate provided to Fox Business by financial data service Ortex. (iStock)
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Ortex made its estimate based on data on interest sold from creditors, major brokers and broker-dealers.
Business Insider was the first to report Ortex data.