Gamestop short selling totals 12 trillion won, 3rd overall… Only 8% decline in the last 7 days
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(New York = Yonhap News) Correspondent Kang Gun-taek = The game stop situation, which has garnered a lot of attention with the’rebellion of ants (individual investors)’ is still ongoing.
Some hedge funds, which sold GameStop stocks in bulk, broke their hands and declared surrender, but most of the short-selling forces appeared to be holding up despite astronomical losses.
S3 Partners, a financial information analysis company, announced on the 29th (local time) that the total amount of short-selling GameStop shares reached 11.2 billion dollars (about 12.5 trillion won), Reuters reported.
By total value, GameStop is the third most short-selling stock in the US by investors after Tesla and Apple.
Short selling of GameStop stocks in the past 7 days decreased by only 8% ($5 million).
This is somewhat of a temperature difference from the public perception that the ants have already achieved a complete victory in the game stop situation.
This is because a few hedge funds, such as Melvin Capital and Citron Research, have declared a breakthrough due to the intensive buying of individual investors gathered through the online community and social media, but it means that most of the short selling forces are firmly holding on.
S3 Director Iho Dusaniski said, “I hear that most of the GameStop short selling has been liquidated, but this is not true at all. According to the data, the entire short selling stock has not moved much.”
Short selling is an investment method in which the stock price of GameStop is expected to fall, and the stocks that are not held are sold by borrowing, and then the price is lowered later and then bought and paid back.
However, as individual investors who rebelled against the open short selling of hedge funds united to raise the stock price by 1,700% for a month, the forces that invested in the gamestop short selling resulted in a total of $19.7 billion (about 22 trillion won) in astronomical losses this year alone.
As GameStop stock prices soared, the rental fee for short-selling stocks also rose to 29.32%, CNBC reported. This is a fee for existing short-selling stocks, and the rental fee for new short-selling shares reaches 50%.
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2021/01/30 06:36 sent