Despite looking like a run-of-the-mill short squeeze, what’s happening in GameStop is anything but that, Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners, tells Axios. Short sellers overall are not being squeezed out of the trade, despite having lost more than $6 billion since Jan. 1.
“I’ve talked to several brokers, they’ve got a line of guys looking to short the stock if there’s any stock available to borrow,” even though shorting GameStop now costs a fee of 150%.
“The value shorts are getting squeezed out and being replaced by momentum shorts looking to ride the stock price down the back end of the roller coaster.”
Author: Dion Rabouin
Publication Date: 28 January 2021
Publication Site: Axios