Short sellers in AMC Entertainment Holdings, Inc. got slaughtered yesterday:
Dusaniwsky, managing director at short-selling data provider S3 Partners, told Barron’s he estimates 75.8 million AMC shares are sold short, or roughly 15% of shares available for trading. There has been some covering, as he estimates shares shorted are down by about 4 million over the last week. But with the stock up $8.47 on Tuesday, short sellers were down $642 million in mark-to-market losses on Tuesday alone, bringing the year-to-date losses to $3.82 billion.
AMC surged upward as it consolidated two new theaters into its company and announced discussions with landlords to reopen closed locations.
Short sellers, largely hedge funds, have already lost nearly $4 billion betting against AMC. Their total losses in meme stocks exceed $12 billion.
The only way I can make sense of their stubborn behavior is this: that they’re desperate to recover what they’ve already lost. A gambler who has lost 90% of his life savings in poker may have to keep playing: how else can he 10x his money and get back to where he started? Conservative bets won’t do that.
The only difference is, the hedge funds are playing with someone else’s money.
More on AMC:
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