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Losses on short positions in U.S. firms top $70 billion - Ortex data
Reuters ^

Posted on 01/28/2021 10:54:41 AM PST by TigerClaws

LONDON (Reuters) - Short-sellers are sitting on estimated losses of $70.87 billion from their short positions in U.S. companies so far this year, data from financial data analytics firm Ortex showed on Thursday.

The hefty losses come as shares of highly-shorted GameStop jumped more than 1,000% in the past week without a clear business reason, forcing short-sellers to buy back into the stock to cover potential losses -- defined as a short-squeeze -- while retail investors then piled in to benefit from the surge.

Chasing shorted companies became a trend among retail traders, rippling across U.S. markets and Europe. Ortex data showed that as of Wednesday, there were loss-making short positions on more than 5,000 U.S. firms.

Its data also showed that estimated losses from shorting GameStop at $1.03 billion year-to-date, while those shorting Bed, Bath & Beyond were looking at a $600 million loss.

Ortex said the figures are based on the change in trading prices between the start of January to Wednesday’s close, and the number of short positions. The company sources short interest data from submissions by agent lenders, prime brokers, and broker-dealers.

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy; Government; News/Current Events; Politics/Elections
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To: TigerClaws

Best news story of the month.


21 posted on 01/28/2021 11:13:08 AM PST by joma89 (Buy weapons and ammo, folks, and have the will to use them.)
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To: TigerClaws

There is a bit of a difference between selling stock that you don’t own (naked shorts) and selling stock that doesn’t exist (fraud). And if the politicians can’t bail out their owners, fraud might well be exposed.

I’m not sure that the brokers, exchanges, and regulators can afford for fraud to be exposed.


22 posted on 01/28/2021 11:15:28 AM PST by PAR35
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To: TigerClaws

Portnoy is complaining?


23 posted on 01/28/2021 11:15:49 AM PST by NonValueAdded (Killer Joe: babies, jobs, tax cuts, he kills them all.)
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To: TigerClaws

24 posted on 01/28/2021 11:16:06 AM PST by Navy Patriot (Celebrate Decivilization)
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To: ConservativeMind

I guess hedge funds are more equal that the little guy who holds game stop to get away with these hijinks. Now I think the price will rise until the little guy is willing to sell.


25 posted on 01/28/2021 11:16:28 AM PST by Domestic Church (AMDG ... )
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To: TigerClaws

Gamestop just needs to issue and sell more shares...


26 posted on 01/28/2021 11:17:40 AM PST by Paladin2
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To: Leaning Right
Wouldn’t it have been safer to just buy put options? I’m sure I’m missing something here.

Not enough money there. Sure, you can make money betting on a winning horse. You can make more money if the race is rigged.

27 posted on 01/28/2021 11:17:47 AM PST by PAR35
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To: TigerClaws
The hedge funds not only sold stock they didn’t have (Naked Short Selling, which is illegal, at least when mere mortals do it), but 40% more than exists.

I will defer to others, but I don’t believe this is illegal. This is done via derivatives. Speculators may buy puts (the right to sell at price), or sell uncovered calls.

The notional stock volume of these derivatives could be many times the outstanding float. In a normal market, these get “unwound” as options approach their expiration dates as traders balance positions, but in a very bizarre, illiquid market, like we have now, these turn into time bombs waiting to explode

28 posted on 01/28/2021 11:19:04 AM PST by PGR88
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To: Leaning Right

Good question. Method might be related to such things as time limits on options and the potential for greater gains.

Its a complicated decision for sure.

https://www.investopedia.com/articles/trading/092613/difference-between-short-selling-and-put-options.asp#:~:text=Put%20buying%20is%20much%20better,because%20of%20the%20limited%20risk.&text=Also%2C%20a%20put%20buyer%20does,a%20limited%20amount%20of%20capital


29 posted on 01/28/2021 11:19:25 AM PST by Starboard
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To: struggle

If that can be proven, THAT is an impeachable offense.


30 posted on 01/28/2021 11:20:21 AM PST by Tench_Coxe
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To: TigerClaws

fiat currency...
fiat stocks....
what else?


31 posted on 01/28/2021 11:20:51 AM PST by Hiryusan (feel free to expand, expound, and distribute)
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To: TigerClaws

This is the first thing my stock market savvy son told me; that there were more shorts than available stock. That’s where institutions will be in legal jeopardy. Some Reddits may not clear the profits they expected. I’m hoping the smart Reddits just put themselves at risk with a few hundred dollars. Entertainment dollars you know.


32 posted on 01/28/2021 11:20:52 AM PST by Savage Rider
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To: Hiryusan

Fake media.

Fake elections.

Fake markets.

People are mad? Put the FBI and DHS on them to shut them up.

Where we are now.


33 posted on 01/28/2021 11:21:46 AM PST by TigerClaws
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To: Savage Rider

“Entertainment dollars you know.”

This is a lot more entertaining than going to an actual casino to spend some time dropping buck$.


34 posted on 01/28/2021 11:23:46 AM PST by Paladin2
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To: Domestic Church

I think I saw somewhere a notice from Robinhood that they were selling holders stocks, against their ability to stop the sale, in order to protect the holder’s position.


35 posted on 01/28/2021 11:24:18 AM PST by Savage Rider
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To: Starboard

Thanks for that link. It clears things up.


36 posted on 01/28/2021 11:24:41 AM PST by Leaning Right (I have already previewed or do not wish to preview this composition.)
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To: TigerClaws

Just copy the lawyers in on the mails, and then withhold anything incriminating as privileged. (More difficult in the EU, where the attorney has to be outside counsel to create priv.)


37 posted on 01/28/2021 11:24:59 AM PST by PAR35
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To: Tench_Coxe

If that can be proven, THAT is an impeachable offense.

*************

No such thing. Can’t impeach a Democrat — for anything.


38 posted on 01/28/2021 11:25:56 AM PST by Starboard
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To: Domestic Church

I guess hedge funds are more equal that the little guy

*************

You can be 100% certain that the hedgies have been burning up the phone line with the people they put in office. They are calling in their chips.


39 posted on 01/28/2021 11:27:44 AM PST by Starboard
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To: TigerClaws

Think of this as the Hedge Funds bringing the country back together after a period of deep division.

After all, Ted Cruz and AOC are in agreement now....


40 posted on 01/28/2021 11:30:43 AM PST by PAR35
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