Short sellers rack up $8.7 billion profit as SpaceX slips below IPO price -Ortex

Short sellers have amassed an estimated $8.7 billion in “paper” profit tied to bets against SpaceX shares, according to Ortex Technologies. The figure reflects losses for the company’s stock after it slipped below its initial public offering price, following SpaceX’s IPO, Reuters reported on July 16 in New York. Ortex’s data and analytics suggest the position is largely unrealized because it depends on the gap between the current share price and what short sellers must pay when they buy back borrowed shares. The market mechanism involves selling borrowed shares and later repurchasing them at a lower price to lock in gains. Reporting was provided by Saqib Iqbal Ahmed.