If you're still shorting every high-profile name without checking the float, stop now.
We've all felt that gut punch in crypto when a crowded short gets squeezed. Losing money as FOMO buyers pile in and paper profits turn into real losses overnight.
Looking at SpaceX, roughly 360 million shares are out on loan to short sellers, representing about 56% of the freely tradable stock. Shorts are sitting on an estimated $15.5 billion in paper profits since the June IPO. That's an extremely crowded trade, not unlike the setups that crushed shorts on
$TSLA runs or the explosive squeezes we saw in
$DOGE and even
$BTC during bull phases.
When that many shares are borrowed, it doesn't take much for a squeeze to wipe out those gains in a hurry. Crypto traders have the scars to prove it from past cycles.
What's your take on whether this SpaceX short gets squeezed like the old crypto plays?
#SpaceX #ShortSqueeze #CryptoTrading