Latest news with #shorting
Yahoo
a day ago
- Business
- Yahoo
Shorting crypto goes horribly wrong, firm loses millions
Shorting crypto goes horribly wrong, firm loses millions originally appeared on TheStreet. On-chain data from market analytics firms Lookonchain and Arkham Intelligence suggest that London-based crypto asset manager Abraxas Capital is suffering almost $20 million in unrealized losses because of shorting multiple cryptocurrencies. Abraxas Capital Management Ltd. manages alternative assets and offers financial investment management and consultation. Lookonchain reports that two Abraxas accounts have taken large short positions in Bitcoin, Ethereum, Solana, Sui network, and Hyperliquid to hedge their spot positions, resulting in over $190 million in unrealized losses. The two Abraxas accounts held more than $190 million in unrealized losses, including a short position of 113,819 Ether (ETH) worth $483 million, which is down more than $144 million in unrealized losses. Abraxas manages approximately $3 billion in assets across a heavily Ether-weighted portfolio estimated at $648.18 million focused on ETH-related assets. It also includes AAVE-wrapped ETH, staked ETH, and restaked ETH, and some positions in Avalanche (AVAX) and other smaller are an important part of crypto markets, where traders often take out leverage against borrowed money to trade, especially when they have no remaining balance to cover losses. If that happens, the exchange automatically closes the trade to prevent further downside from the position. When this occurs, it can impact price movements within the crypto market. If many liquidations occur simultaneously, it can trigger a chain reaction of sudden buying or selling across the market. Interestingly, Lookonchain also flagged Galaxy Digital (GLXY) for moving 224,000 Solana, valued at $41.12 million, to Binance and Coinbase, which combined begs the question of whether Galaxy Digital will sell large amounts of tokens going forward. Shorting crypto goes horribly wrong, firm loses millions first appeared on TheStreet on Aug 11, 2025 This story was originally reported by TheStreet on Aug 11, 2025, where it first appeared.
Yahoo
28-07-2025
- Business
- Yahoo
Hedge Funds Just Got Burned: Retail Traders Trigger $2.5B Short Squeeze in July
It's been a tough July for anyone shorting the riskiest corners of the U.S. stock market. According to S3 Partners, traders betting against the 50 most-shorted U.S.-listed names have racked up $2.5 billion in losses this month alonefour times the average short loss across the market. That pain is being driven by a surge in speculative buying from retail investors, many of whom are revisiting meme-stock names like Kohl's and Opendoor. A Goldman Sachs basket tracking the highest short-interest stocks in the Russell 3000 has now posted nine consecutive weeks of gains, up 33% over that stretch. By comparison, both the S&P 500 and Russell 3000 are up just 10%. Momentum like this isn't something hedge funds can ignore. Marco Iachini, senior VP at Vanda Research, said retail flows into speculative names are risingand so is trading frequency. That could help explain why short squeezes have intensified, pulling more institutional money into the mix. Retail investors are squeezing hedge funds and then forcing this upward move, Iachini said. While some strategists caution this won't repeat the scale of 2021's GameStop (NYSE:GME) saga, the breadth of the current rally could keep it alive longer than expected. At least for now, animal spirits remain strongand there's no sign of a cooldown. That said, the coming days will be a real test. Investors are staring down a heavy calendar: a Federal Reserve rate decision, earnings from several tech giants including Tesla (NASDAQ:TSLA), and the monthly jobs report. Goldman Sachs and others have started advising clients to buy hedges, signaling institutional caution. Still, as Ihor Dusaniwsky of S3 notes, once hedge funds have positions on both sideslong and shortvolatility tends to spike. That's often when the biggest moves happen. If retail traders keep pressing, the rally could stretch even furtherat least until the next catalyst hits. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
13-05-2025
- Business
- Bloomberg
Hong Kong Dollar Slide Aided by Record Low Cost for Short Bets
The cost of shorting the Hong Kong dollar has slumped to an all-time low, as the currency weakens to the middle of its fixed trading band. One-month forward points on the city's dollar, which are added to or subtracted from the spot level to calculate the forward rate, dropped to the lowest on record Monday, according to data complied by Bloomberg. That has renewed bearish bets against the city's currency.
