The meme stock rally triggered by the return of “Roaring Kitty” to social media has cost GameStop stock short-sellers more than $2 billion in just two days, according to data firm S3 Partners.
Ihor Dusaniwsky, S3’s managing director of predictive analytics, wrote on X: “After being down $862 million in mark-to-market losses yesterday, $GME [GameStop] shorts are down another $1.36 billion in mark-to-market losses today.”
GameStop stock was up 21% Tuesday afternoon as trading was halted, after multiple pauses in trading on Monday, when the stock closed up 74%.
Short-selling is an investment strategy in which a trader borrows shares and sells them, with the intent of buying them back later at a lower price, returning the borrowed shares (plus interest) to the lender, and profiting off the difference.
Dusaniwsky added that GameStop’s short interest is $1.92 billion, and that 63.2 million shares have been shorted.
“We are seeing continued squeeze-related short covering due to the rebirth of the meme trade,” he wrote.
Additionally, he wrote that AMC stock shorts are down $244 million in midday losses after falling $127 million on Monday.
AMC stock was trading more 37% higher Tuesday afternoon after it was also halted.
This article originally appeared on Quartz.
More on GameStop, AMC, and the meme stocks rally
‘Roaring Kitty’ brought back the GameStop meme stock frenzy. Here’s what to know about him
GameStop stock soars 120% as the ‘Roaring Kitty’ meme stock rally continues for a second day
It’s not just GameStop and AMC. These meme stocks are also rallying
GameStop meme stock mania is back. Here’s what happened last time
Meme stocks are back. It won’t last, expert says
The GameStop meme stock rally helped AMC stock surge 102% — and the company raised $250 million
+ There are no comments
Add yours