Short selling ‘white flag surrender’ due to stock price surge of Ecopro… 500 billion liquidated in one day

As Ecopro BM and EcoPro, which rank first and second in market cap on the KOSDAQ market, continued to rise after overcoming controversy over their overvaluation, investors who had started short selling also fell on their feet.

As losses snowballed due to rising stock prices, it was found that existing short-selling investors liquidated their short-selling positions worth more than 500 billion won in one day alone through stock purchases.

However, as the stock price continues to rise, the attractiveness of short selling is increasing, and new short selling and sales are continuing.

According to the Korea Exchange on the 21st, as of the 18th, the 카지노사이트short selling balance of Ecopro BM was 4,293,426 shares, a decrease of 893,981 shares (17.2%) from the previous day’s 5,187,407 shares.

Ecopro also reduced its short selling balance from 1,310,803 shares on the 17th to 1,111,618 shares on the 18th, just one day later.

Based on the closing price of the day, the short selling balance decreased by 291.4 billion won in Ecopro BM and 222.7 billion won in Ecopro, a total of 514.1 billion won.

In the case of Ecopro BM, the balance of short selling, which was 2.14 million shares on March 3, continued to increase and exceeded 5 million shares on the 12th. However, due to the mass liquidation of short selling on the 18th, it returned to the level of the end of June in one day.

Short selling refers to an investment method in which you borrow stocks and sell them in the market first, then buy back the stocks in the market when the stock price goes down to make a profit. Conversely, when the stock price rises, short sellers suffer losses. Compared to the beginning of the year, Ecopro BM surged 295% and Ecopro 940%, and it is estimated that short-selling investors who could not bear the loss made a stop loss.

On the 18th, Ecopro rose 11.91% and Ecopro BM surged 16.85%. There were many views pointing to the short squeeze as the background of such a surge, but this speculation turned out to be true to some extent. A short squeeze refers to a phenomenon in which the share price of an issue soars in the process of buying stocks to repay a short sale.

Existing short-selling investors are crying and packing their bags, but as the stock prices of Ecopro BM and Eco-Pro rise further, the attractiveness to new short-selling investors has increased. Due to the new short investors, short selling continues.

For three days from the 18th to the previous day, Ecopro BM (KRW 368.6 billion) was the listed company with the highest short-selling transaction value combined with KOSPI and KOSDAQ. Ecopro also ranked sixth with 99.6 billion won.

Choi Yoo-joon, a researcher at Shinhan Investment & Securities, said, “It is also necessary to pay attention to whether the short squeeze, which is currently focused on secondary batteries, is spreading.”

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