SVB Collapse
Short Sellers Make $500 Million on SVB’s Demise. Collecting Won’t Be Easy
- One-day mark-to-market profit of $513 million on short bets
- Stock remains halted after falling 63% in premarket trading
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SVB Financial Group’s record plunge on Thursday minted short sellers roughly half a billion dollars in paper profits. But they now face a challenge: how to close their positions.
SVB shares plunged by 60% on Thursday as worries mounted over the bank’s operation, netting traders who bet against the stock a one-day mark-to-market profit of roughly $513 million. The stock fell another 63% in premarket trading Friday before being halted, with the Federal Deposit Insurance Corp. ultimately announcing that it had seized the bank.