Tag: COSM Short Squeeze

Robinhood Lost $57 Million Shorting COSM Stock

Robinhood Lost $57 Million Shorting COSM Stock
Market News Today: Robinhood lost $57 million shorting COSM stock.

Robinhood (NASDAQ:HOOD) lost $57 million shorting Cosmos Health Inc. (NASDAQ:COSM) stock due to a ‘processing error’ that caused the company to glitch into shorting the healthcare stock.

“A processing error caused us to sell shares short into the market, and although it was detected quickly, it resulted in a loss of $57 million as we bought back these shares against a rising stock price,” CFO Jason Warnick said.

Robinhood ended up down $57 million in a single day after a glitch let its trading app customers temporarily short a meme stock, according to company executives.

Cosmos Health’s share price tripled on December 16, when a 1-to-25 reverse stock split for the healthcare company went into effect.

But the reverse stock split caused issues in Robinhood’s trading app, allowing users to briefly sell more Cosmos shares than they owned to create a temporary short position, the company said in its fourth-quarter earnings release Thursday.

Executives Forgo $500 Million

Robinhood News Today.
Robinhood News Today.

The loss suffered by Robinhood tops Cosmos’ current total market capitalization, with the healthcare stock valued at $52 million as of Friday.

Robinhood executives will forgo around $500 million in stock-based compensation to help it cut costs.

Retail investors continue to scrutinize the company after it had colluded with Citadel during the ‘meme stock’ frenzy to halt trades.

Investors speculate Cosmos Health (COSM) may have a short squeeze this year, so Robinhood’s short ‘glitch’ doesn’t look too well in retail’s eyes.

HOOD stock is currently up +23% year-to-date.

Will Robinhood ever win retail back?

Share this article and leave your thoughts below.

About the company

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Market News Today - Robinhood lost $57 Million shorting COSM stock.
Market News Today – Robinhood lost $57 Million shorting COSM stock.

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COSM Short Squeeze: Latest News and Short Interest Update

COSM Short Squeeze News
Market News: COSM Short Squeeze News + More.

Cosmos Health Inc. (COSM) stock closed the trading day on Tuesday at $4.40.

Liquidity in the security fell massively from its average trading volume of 60 million.

COSM stock fell more than -31% on Tuesday alone and is currently down -95.31% this year-to-date.

Our current bear market has dragged several companies down and Cosmos Health Inc. is no exception.

Just two weeks ago the stock surged from $0.30 to more than $23.

The stock has come down drastically since, but shareholders say the stock is not done moving.

There seems to be growing ambitions of creating a short squeeze here due to the extremely high short interest.

Here’s the latest COSM stock news and updates.

COSM Short Interest Today: Will COSM Squeeze?

COSM Short Interest Today

Fintel is reporting COSM’s short interest today at a whopping 61.34%, data per FINRA.

Just weeks ago, COSM stock had a short interest of 321.74%.

The massive surge from $0.30 to $23 and drop in short interest suggests there are shorts who have closed their positions.

But like AMC Entertainment stock, (when it first surged to $22) there is a lot of short interest remaining.

AMC’s share price had cooled following the events of the first price surge in late January of 2021.

Five months later, retail investors were able to squeeze more short sellers out of their positions, taking AMC from $14 per share to its current all-time high of $72 per share.

Will the same happen with Cosmos Health?

If there’s anything the current bear market has proved it’s that there is much that is uncertain.

However, due to COSM’s residual high short interest, the probability of a larger short squeeze is certainly there.

Related: How to Invest in The Stock Market for Beginners

What Triggers a Short Squeeze?

COSM Short Squeeze

Just as we saw with AMC Entertainment stock and GameStop, lots of buying volume is what triggers a short squeeze.

But investors beware, failing to take profits during massive runs could result in holding great losses.

We’ve seen this occur in many communities.

Lack of timely information has also proven to be detrimental to late buyers.

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Are you holding COSM stock?

Leave your thoughts below on where you think COSM stock is headed.


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