Investors shorting meme stocks AMC Entertainment and GameStop are now estimated to have lost $754 million this week as shares of the two companies rallied, data from analytics company Ortex shows.

Shares in GameStop, which was at the center of the Reddit short-selling earlier this year, increased by 8% to almost $225 in premarket trading this Wednesday, a day after increasing by 18%. Shares in theater company AMC went up by 39%.

“Such a rise can cause shorter sellers to attempt to close their positions by buying back shares, triggering more demand which then leads the price to boost up even more,” said Peter Hillerberg, co-founder of Ortex.

“This is what Reddit is looking for.”

Short interest in GME it is now at 17% of freefloat and AMC is now estimated at around 21% of freefloat, according to Refinitiv.

Ortex data reveals that short-sellers lost $618 million during Tuesday’s trading, now rising to $754 million as of Thursday morning including aftermarket trading.

Author: Scott Dowdy

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