SPAC Short Sellers Make $1.2 Billion Paper Gain From Faded Mania
- They profit by betting against ‘De-SPACs’ after their mergers
- ChargePoint, SoFi among biggest wins for shorts this year
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Skeptics who bet against businesses that went public by merging with blank-check companies are sitting on more than $1.2 billion in paper profits now that investors have soured on high-flying and overhyped stocks.
That’s how much short sellers potentially have made just during the opening weeks of 2022 on companies listed in the De-SPAC Index, according to S3 Partners, the analytics firm that tracks short-sale data. The 25-member index follows previously private firms after they combine with a special-purpose acquisition company.