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What happened to half the Gamestop shorts between 10th and 12th of February?

Personal Finance & Money Asked by NoAnswer on April 11, 2021

I was too late to profit from the Gamestop short squeeze at end of January. However I took interest and kept an eye on some statistics for the Gamestop stocks:

In January, the short percent of float was as high as 140% (See: How can GameStop be short 140% of float?)

All week the stock price was around $50 and until 10th of February the shorts were still as high as 80% of float.

Today, according to https://www.marketbeat.com/stocks/NYSE/GME/short-interest/ the shorts are only 40% of float.

How can the shorts be suddenly only half of what they were before without the stock price changing much?

One Answer

It's hard to know what the facts are because at web sites like Yahoo Finance, MarketWatch, MarketBeat, et al, many of the stats that they provide do not match up. In addition, short interest data is reported twice a month as seen in your link.

It would be helpful if you could dig up a list of the daily short interest over the past 3 weeks. Then, you could compare its daily change with share price change.

The short answer is that the short interest declines when the shorts cover their positions and when a stock like GME drops from $500 to $50, that's the likely result.

Correct answer by Bob Baerker on April 11, 2021

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