Short sellers earn $8.7 billion as SpaceX stock falls to IPO price

Short‑sellers have amassed a record‑setting $87 billion in profits this quarter, according to a Reuters analysis that tracked the performance of the most heavily shorted stocks. The gains came from a wave of short positions that turned profitable as several high‑profile names fell sharply, with the most dramatic drop seen in SpaceX’s shares, which slipped below the price at which the company first went public. The analysis highlighted that SpaceX’s stock, which had been trading near its IPO level of $18.50 per share, fell to $17.90 after a series of earnings‑related concerns and a broader sell‑off in tech‑heavy sectors.

The report also noted that other companies on the short‑seller radar, including Ortex, experienced significant declines that contributed to the overall profit haul. Ortex’s shares fell by more than 20 % after the market reacted to a downgrade in its valuation, further boosting short‑seller returns. Market participants attribute the sharp declines to a combination of tightening liquidity, rising interest rates, and heightened scrutiny of growth‑oriented companies that have yet to demonstrate consistent profitability.

In the wake of these movements, analysts warn that short sellers remain a potent force in the market, especially as investors seek to hedge against volatility in the tech and space‑flight sectors. The sustained profitability of short positions underscores the importance of risk management for investors holding exposure to companies that have yet to establish a stable earnings track record.