Finance

GameStop’s Short Interest Keeps Surging Proving Short Squeeze Thesis

Published

2 years ago

May 19, 2022

Nez Media Team

GameStop’s short interest has been rising ever since its share price declined from its all-time high of $347.51.

GME’s short interest plummeted after shares rose early last year from the ‘meme stock’ frenzy.

While GME shareholders might have been able to scare of some short sellers, they’re back.

And they’re at high risk because GME shareholders continue to buy and hold the stock.

Is another GameStop short squeeze underway?

Let’s discuss it!

GameStop short interest

GameStop’s reported short interest is currently 24.23%.

This information is taken straight from Ortex – though many GME shareholders suspect the short interest is significantly higher.

This is mainly because the short interest is ‘self-reported’ by institutions.

And as you can tell, there is very little trust factor.

Ortex is a great source, nonetheless.

Mainstream media tried to kill the short squeeze thesis by saying GameStop had already squeezed and there was no more short interest.

However, GameStop’s high short interest only proves there are many short sellers who have yet to close their short positions.

GameStop’s short interest is equivalent to approximately 21.45 million shares on loan.

That’s the number of shares that have been borrowed but have yet to be returned to the lender.

Returning these shares back would require short sellers to buy back real shares, resulting massive volume and price runup.

Recent news and catalyst

Shareholders are especially excited about GameStop’s upcoming dividend.

See, in order for these lenders to receive the dividend, they will need the stock.

If millions of shares are out on loan, lenders could force borrowers to return them and claim that dividend.

As short sellers pile up to return these shares, the possibility of a short squeeze is highly probable.

But wait, there’s more.

Gabe Plotkin’s Melvin Capital is shutting down in June.

The hedge fund is notoriously known for being short on GameStop, resulting in its downfall.

Melvin Capital took a 50% loss in 2021 alone betting against ‘meme stocks’.

The short seller lost a staggering 20.6% in the first quarter of 2022 before ultimately throwing in the towel.

Gabe Plotkin told CNBC they are shutting down towards the end of June and plan to start a new company.

The hedge fund will be liquidating their assets to pay back their investors.

Any GameStop positions that were still open will need to be closed.

Are big price moves underway?

There’s no doubt GameStop will see a runup as short positions get closed.

Whether GME stock surges due to Melvin Capital closing or due to the stock dividend, a runup seems inevitable.

One thing is certain, though.

GameStop’s short interest tells us shorts have not left – but neither have retail investors.

Is it possible GME stock will reach a new all-time high soon?

What do you think?

Leave your thoughts in the comment section below.

You can follow Nez Media on Twitter @NezMediaCompany.

Related: 98% of Tickers Had Fewer FTDs Than GameStop

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Nez Media Team

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Finance

South Korea Regulators Now Probe Into Illegal Short Selling

Published

1 month ago

November 9, 2023

Frank Nez

South Korea regulators now probe into illegal short selling trades by global investment banks in efforts to root out manipulation. Banks that have …
South Korea Regulators Now Probe Into Illegal Short Selling

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Frank Nez

American Entrepreneur and Journalist. Frank Nez is the CEO of Nez Media Company and Founder of advertising agency Easy Marketing Concepts.

Finance

98% of Tickers Had Fewer FTDs Than GameStop

Published

2 years ago

May 17, 2022

Nez Media Team

Research has surfaced that 98% of tickers had fewer FTDs than GameStop (GME).

GameStop has been the victim of short sellers for over a year now since it ran up to $347 per share in January of 2021 when it squeezed shorts from their positions.

The game retailer continues to be heavily shorted today with a 22.90% reported short interest (updated daily on FrankNez – source, ORTEX).

Keep reading to take a look at the GameStop’s FTD data.

GameStop failure-to-delivers unveil market weakness

Warren Buffett said the stock market is a device used to transfer wealth from the impatient to the patient.

And it’s true.

But he never mentioned how the cards are stacked against retail from the beginning.

GameStop’s FTDs unveiled market weaknesses and lack of proper regulation in the system.

Gary Gensler admitted earlier this year 90%-95% of retail orders are not processed through the lit exchange – but rather through dark pools.

Naked short selling has become a serious problem in the market, but especially in GME’s story because of the blatant market manipulation the retail community has seen.

FTDs for GameStop have been at an all-time high as market makers fail to meet their obligation to buyers.

GameStop is experiencing anywhere between thousands to tens of thousands and even hundreds of thousands of failure-to-delivers daily.

We tend to see FTDs in the market when there are not enough shares available to meet buyers demand.

So, while retail investors might not get their orders filled, short sellers are allowed to borrow an unlimited supply of stock to short the company.

What’s alarming is synthetic shares are being created to sell GME stock when there are no available shares to borrow.

This results in plunging share prices with no way for retail investors to fight back.

FTDs in GameStop are greater than majority of tickers in the market

GameStop has seen a massive surge in FTDs ever since the ticker became popular on r/wallstreetbets.

Although retail investors have exposed injustices in the market, the SEC and other regulators have failed to solve major problems in the system.

Total count of symbols with daily FTDs – Source

The chart above shows the total count of symbols with FTDs in the past 24 days.

98% of symbols had less FTD days than GME did.

AMC stock came close with 22 days of FTDs in a row where 95% of symbols had less FTD days than the movie theatre chain did.

AMC Entertainment has been another popular ‘meme stock’ with a high short interest and fails-to-deliver count.

The information provided by the community merely proves the retail has always been right.

And although nothing has been done about the blatant manipulation, shareholders know a short squeeze is inevitable.

You can follow Nez Media on Twitter @NezMediaCompany.

Read: Here’s How We Know a GME Short Squeeze is Coming

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Finance

Here’s How We Know A GME Short Squeeze is Coming

Published

2 years ago

May 17, 2022

Nez Media Team

GameStop is the poster child of ‘meme stocks’ and the original topic of a ‘short squeeze’, there’s no doubt about it.

While AMC has followed suit and is also a very important topic, today I’m going to talk about the evidence that points towards a GME short squeeze.

Be sure to give this article a social share to combat mainstream media attacking the retail community.

Let’s get started!

GME short interest

GME’s short interest is a going to play a very big role in a GME short squeeze.

While GameStop’s run to almost $400 was significant, the data points that the ‘meme stock’ is not done running just yet.

GameStop is a heavily shorted stock meaning several key players known as ‘short sellers’ are betting the stock will go down to pandemic numbers.

However, GameStop has quite a unique community so this might prove to be quite hard.

GME’s current reported short interest is 22.49% and there are currently more than 20.33 million shares on loan.

These are shares that have been borrowed but have yet to be returned, usually by short sellers.

This is the highest number of shares shorts have borrowed to short GameStop.

Short sellers are more in debt today than they were when GameStop ran to its ATH of $347.51 on January 27th, 2021.

More short covering means a higher surge in the stock.

And although there is speculation GameStop’s short interest is much higher, I can only report the reported SI for the time being.

GameStop dividend is coming very soon

GameStop shareholders are excited about the dividend announcement regarding the company’s stock split in the form of a dividend.

Lenders of the stock would have to force short sellers to buy back and return the shares to claim that dividend for themselves.

It will cause a ruckus!

This catalyst could just be the thing GameStop needs to trigger another massive price runup.

GME stock is up more than 279% in the past five years and seems to be holding steady in this bear market around the $90 price range.

Today’s bear market has made it difficult for retail investors to cause GME stock to surge in spite of healthy buying volume.

GME stock currently has an average volume of 4.4 million.

In March we saw retail volume rise causing the stock to surge up to $199.24 per share before plunging due to halts.

Regardless of the market manipulation, a GME short squeeze is highly probable.

The short interest confirms GameStop is a short squeeze play.

The volume is the support behind the stock.

And a stock dividend could just very well force short sellers to return all borrowed shares back to their lenders, triggering a MOASS (mother of all short squeezes).