There is some similarity in the current discussion to that about high-frequency trading in early 2010s. here for a concise discussion of some of these issues). Hopefully some other parts of the financial plumbing have also received more attention, like the T+2 settlement process, the role of the NSCC (National Securities Clearing Corporation, a subsidiary of the DTCC), how clearing brokers (Robinhood is its own) and clearing deposits work, that short-selling is (usually) good for price discovery, and that various conspiracy theories about certain large market participants are unlikely to be true.Ī bit less discussed in the current cycle is the question about the danger of CCPs (central clearing counterparties) as single points of failure, whether their incentives are sufficiently aligned with the rest of the market, whether they should be more transparent about their operations, structure, and, especially, like in this case, when they avail themselves of their right to add additional margin charges for certain names. Everyone who cares should now understand the mechanics of a short-squeeze. We will not repeat some of the obvious or confused points widely discussed in the press. WSB-enticed traders seized on GME and a couple of other names like AMC, BB etc as a nostalgia/gambling/nihilist/stick-it-to-the(-hedge-fund)-man trade. It is unusual in that on the one side were hedge funds trying to sell GME short, on the other side retail traders from the reddit/WallStreetBets (WSB) crowd, mostly trading through their Robinhood apps. It certainly rivals the 2008 Volkswagen short squeeze, where VW briefly became the world’s most valuable company, in eccentricity. It went through a short squeeze, a classic market occurrence, although it is infrequently this dramatic. Make sure you’re following us on Twitter for updates.Dozens of articles have been written in the popular press about the recent trading action in GameStop (GME). Otherwise, please use our Shortsight data tool. We further refine our model output based on consensus surveys across key market participants.īloomberg users can check out our Black App at black. Our models dynamically weight inputs based on security and market characteristics such as volatility and liquidity. Underpinning our analytics and research are multi-factor models that use private and publicly available data sets (such as exchange and contributed data) as inputs. S3’s analytics provide clients with the transparency and data they need to manage risk and make more informed investment decisions. Both fundamental and momentum short sellers have found opportunities and price exit points to trim their positions in the face of these losses.
While long shareholders are looking at significant mark-to-market gains, shorts are now down -$15.31 billion in year-to-date mark-to-market losses. Long shareholders have been able to support GME’s stock price and rally it to historically high levels. GME price volatility has been remarkably high, and the stock has gained +400% over the last week. GME shares shorted are now 27.13 million. Short sellers bought to cover and trimmed positions as they incurred large mark-to-market losses. Over the last few days, GameStop short interest has decreased from $11.20 billion to $8.82 billion. Investors were left unsure of what would happen next.Īs S3 short insight data shows, GameStop shares shorted significantly declined as short sellers began liquidating their holdings.
GME shares shorted are now 27.13 million.Ī week of retail investors running up the price of struggling stocks has shocked Wall Street, forced the world to pay attention, and left a trail of chaos and confusion in its wake.
#Gme squeeze full
The Short Squeeze Is In Full Force: What’s Happening Now With $GME
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