AMC short sellers just lost $512 million in a single day as the stock spiked once again

A person rides his bicycle past the closed AMC movie theaters in Times Square on October 22, 2020.
Gary Hershorn/Getty Images

Short-sellers betting against retail favorite AMC lost $512 million on Monday, according to Reuters citing data from Ortex.
The loss is massive, but it doesn't come close to the $2.8 billion that short-sellers suffered at one point during an earlier rally for the theater operator.
Data from MarketBeat shows that 22.72% of AMC shares are sold short.
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Short-sellers betting against meme stock AMC Entertainment lost $512 million on Monday when the movie theater chain rallied 15%, according to Reuters, citing data from analytics firm Ortex.

AMC rose further in Tuesday's session, jumping by as much as nearly 13% to $64.14.

The loss is suffered by short sellers on Monday is massive, but it doesn't come close to the $2.8 billion that short-sellers lost at one point in May when shares rallied by as much as 127% in a single day

The activity is reminiscent of the GameStop mania that caught Wall Street by storm early this year when Reddit traders coordinated online to snap up shares in companies with high short interest from Wall Street firms.

The short-squeeze frenzy around the handful of meme stocks has picked up once again after losing steam following the intial episode earlier in the year.

In addition to the old favorites, a new group of meme stocks has emerged during the latest rally. In the past 24 hours, AMC was the third most mentioned stock on Reddit, after Clean Energy Fuels and Petco, according to data by Quantitative Quiver. Other recent stocks discussed on Wall Street Bets include Wendy's and Invesco Mortgage Capital.

Data from MarketBeat shows that 22.72% of AMC shares are sold short, in contrast to Clean Energy Fuels' 5.91%.

The theater operator's stock has rallied more than 2,580% this year on the back of retail-trader enthusiasm.

Read the original article on Business Insider