AMC Shorts Take $653 Million Loss in August

It’s been a rough August. And it’s not over.

Short sellers in shares of AMC Entertainment Holdings have lost $653 million so far this month. From a new Bloomberg report:


Get the blog before anyone else…subscribe!


Investors betting against the most well-known meme stocks have lost about $1.65 billion this month after the shares soared in value, prompting a short squeeze.

AMC Entertainment Holdings Inc.’s 47% rally has pushed mark-to-market losses for short-sellers to $653 million, S3 Partners data show. Similar bets against Bed Bath & Beyond Inc. and GameStop Corp., which have surged 359% and 19%, respectively, in August, lost $1 billion combined.

Bets against meme stocks like AMC and GameStop blew up hedge fund Melvin Capital Management, among others. But like moths to the flame, short sellers seem drawn to losing more.

Many firms like Melvin heavily shorted multiple meme stocks. Rallies in several meme names at once multiplies their losses.

Shorting a heavily shorted company is a recipe for a short squeeze. Add a fanatical retail following, and disaster could strike at any moment.

The ideal short sale candidate is a failing company that isn’t heavily shorted. And you want something with no cult following.

Or better yet, follow the counsel of a hedge fund manager I had dinner with recently:

“Short selling is a great way to lose money.”

I guess some are learning. As for the rest, bon chance.

What do you think of short sellers recent losses? Leave a comment at the bottom and let me know!

More on markets:

AMC’s 9 Million Missing Shares

Is Melvin’s Gabe Plotkin Headed to Prison?

Shorts Having Their Worst Month Since January 2021

Get the blog before anyone else…subscribe!

If you found this post interesting, please share it on Twitter/Reddit/etc. This helps more people find the blog! 

Save Money on Stuff I Use:

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

Misfits Market

I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $15 on your first order. 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s