SpaceX short sellers see $15.5 billion in paper profits and are doubling down on their short positions

According to data from analytics company Ortex Technologies as of Tuesday, short sellers of SpaceX (SPCX.O) have realized approximately $15.5 billion in paper profits since its IPO in mid-June, as the stock has fallen below its IPO price. Short sellers profit by borrowing shares to sell, then buying them back at a lower price. As SpaceX's stock fell from its post-IPO high of $225.64 to below the $135 IPO price, they have increased their bearish bets on the company.

"There are currently no signs that short sellers are closing out their positions in SpaceX," said Peter Hillerberg, co-founder of Ortex. "If anything, they are adding to their short positions," Hillerberg added. As of Tuesday, Ortex data shows approximately 360 million SpaceX shares have been lent out, representing about 56% of the float. Musk said last Friday that "the probability of survival for companies holding significant short positions in SpaceX for the long term is very low." (Jin10)