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AMC short sellers lost $512 million after Monday's rally - Ortex

Stock MarketsJun 15, 2021 09:36AM ET
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© Reuters. FILE PHOTO: An AMC theatre is pictured amid the coronavirus disease (COVID-19) pandemic in the Manhattan borough of New York City, New York, U.S., January 27, 2021. REUTERS/Carlo Allegri/File Photo

(Corrects to $512 million from $488 million in the headline)

(Reuters) -Investors shorting "meme stock" AMC Entertainment (NYSE:AMC) Holdings are estimated to have lost about $512 million on Monday after a rally that sent the cinema operator's shares up more than 15%, data from financial analytics firm Ortex showed.

By contrast, AMC short-sellers suffered $1.2 billion in mark-to-market losses for the week to May 28, when small-time traders on online discussion groups sent the stock up about 116% by triggering a phenomenon known as a "short squeeze".

AMC shares were up 2% at $58.12 in premarket trading on Tuesday. The stock has surged more than 2,580% so far this year, riding a wave of support from individual traders who have come together on online forums such as Reddit's Wall Street Bets.

Recent reports from brokerages Fidelity and Freetrade show AMC has been the most traded stock by their customers, many of whom are small-time investors.

Market sources told Reuters last week that the volatility in AMC shares had led some professional traders to use options to limit their risk as they make bearish bets on the stock.

AMC has raised funds in recent weeks by issuing fresh equity to hedge fund Mudrick Capital and selling stock "at-the-market", as it capitalizes on the blistering rally in its stock. It plans to use the proceeds to repay debt and for potential acquisitions of theaters.

AMC short sellers lost $512 million after Monday's rally - Ortex
 

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Comments (4)
Marcos González Pérez
Marcos González Pérez Jun 15, 2021 10:50AM ET
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well...that is only the start...they will lose much more. Let us see those tendies!!! 🦍🦍🦍🚀🚀🚀💎💎💎
Don Gamestop
Game_Over_Hedgie Jun 15, 2021 9:21AM ET
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They've only lost 488 million yet! ❤️🚀
Fly Me To the Moon
Fly Me To the Moon Jun 15, 2021 9:21AM ET
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correction - 512 million
Fly Me To the Moon
Fly Me To the Moon Jun 15, 2021 9:10AM ET
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Short Squeeze? Don’t those holding short have to cover for a Short Squeeze? Maybe you meant gamma squeeze …
Mr Stanley
MStanley Jun 15, 2021 8:53AM ET
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what short squeeze? it didn't happen yet
Barry Hill
Adastra Jun 15, 2021 8:53AM ET
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Correct. They are pushing this narrative in order to fool retail traders to stand-down from HODLing.
 
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