APE just became the #1 shorted stock on Yahoo Finance’s ‘Top Most Shorted Stocks List’.
According to Fintel, APE has 8.9 million shares going to dark pools with approximately more than 50.6 million shares having been shorted, via NYSE.
APE’s volume has been above its average volume of 16 million, but institutions are driving the price down through a significant number of borrowed shares.
One can say APE (AMC’s Preferred Equity) is one of the most manipulated securities in the market.
$APE comes just above Bed Bath & Beyond (BBBY) and Carvana (CVNA).
Other companies listed on Yahoo’s Top Most Shorted Stock’s includes Beyond Meat (BYND), MicroStrategy Inc. (MSTR), and Marathon Digital Holdings, Inc. (MARA).
In October alone, APE topped $304.9 million in FTDs.
FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.
These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.
In the case of sellers, it means not having the goods to meet that transaction.
AMC Issues Warning of Possible APE Short Squeeze
That same month in October, AMC released a statement warning short sellers of the possible losses they could incur in the event of a short squeeze.
“purchasers of our Class A common stock and AMC Preferred Equity Units could incur substantial losses if there are declines in market prices driven by a return to earlier valuations; to the extent volatility in our Class A common stock and AMC Preferred Equity Units is caused, or may from time to time be caused, as has widely been reported, by a “short squeeze” in which coordinated trading activity causes a spike in the market price of our Class A common stock and AMC Preferred Equity Units as traders with a short position make market purchases to avoid or to mitigate potential losses, investors purchase at inflated prices unrelated to our financial performance or prospects, and may thereafter suffer substantial losses as prices decline.”
Retail investors have been buying APE stock in efforts to trigger a short squeeze like when shareholders drove AMC’s share price from $14 to $72 per share.
While one might argue that the price surge wasn’t an actual squeeze, it was certainly a significant move to the upside.
Especially after trading at $2 prior to the ‘meme stock’ frenzy.
Will shareholders be successful at creating a short squeeze for APE?
Afterall, APE is currently one of the most shorted stocks in the market.
I’m curious to know your thoughts.
Leave a comment down below.