GameStop, AMC Shorts Get Hit With $673 Million Loss in Big Rally

GameStop, AMC Shorts Get Hit With $673 Million Loss in Big Rally

GamestopInvestors betting against retail trader favorites GameStop Corp. and AMC Entertainment Holdings Inc. were dealt a serious blow on Wednesday to the tune of about $673 million, according to data from financial analytics firm S3 Partners.

GameStop and AMC, two wildly popular meme stocks among members of Reddit’s WallStreetBets forum, soared more than 16% and 19% respectively as speculative assets picked up steam. Those gains pushed mark-to-market losses for short-sellers to roughly $8.1 billion for the year, according to S3 Partners data.

The video-game retailer and movie-theater chain have recaptured Wall Street’s attention as analysts speculate retail traders in particular are driving the action. The hashtag #AMC500k continued to trend on Twitter, while mentions on social trading platforms like StockTwits surged.

GameStop short-sellers were dealt mark-to-market losses of nearly $383 million on Wednesday, Ihor Dusaniwsky, S3 Partners’ managing director of predictive analytics, said by email, pushing year-to-date losses to $6.7 billion. For AMC shorts, the day’s loss came in at $291 million, meaning short-sellers are down more than $1.3 billion this year.

Bearish bets have remained steady with roughly one-fifth of available GameStop and AMC shares currently sold short, according to data compiled by S3 Partners. A group of 37 so-called mime stocks tracked by Bloomberg rose 7.7% Wednesday for the best session since March.


Jamie Loesch

Jamie started working for Economy news in January 2021. Jamie worked before in many international news publications and she loves economics. She graduated from New York university.

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