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Snap shorts are down $1 billion in paper losses this year

June 28, 2019

Snap Inc.’s recent rally has burned short sellers, who have been rushing to cover their bearish positions as shares of the social-media company climbed.

A Snap SNAP, -0.88% short squeeze began in February, said S3 Partners analyst Ihor Dusaniwsky, and the number of Snap shares shorted has fallen by more than 50% since then, to 75.1 million. Short interest currently stands at 8% of Snap’s float.

Short sellers have already racked up significant paper losses on the year, standing at $1.02 billion as of late Thursday. Snap shares have jumped 165% so far in 2019, as the company rolled out its redesigned Android app and began to see stabilization in user-growth trends.

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