Short sellers in Carvana Co. just passed a grim milestone: more than $1 billion in losses this year.
A hot streak for the struggling used-car dealer has spelled only trouble for bearish investors with Carvana rallying 411% so far in 2023. After the latest run-up — with about about 56% of the company’s free float held short — shorts are down $1.04 billion in mark-to-market losses for the year, according to S3 Partners data.
The day’s trading volume was more than 10-times the three-month daily average, according to data compiled by Bloomberg. But, only a portion of that “can be attributed to short covering due to a painful short squeeze,” Dusaniwsky said. The majority of the trading was long investors buying the shares, he added.
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