Short sellers crash Carvana



  • Short sellers lost more than $2 billion as the company’s shares soared more than 1075% in 2023.
  • On Wednesday, Carvana’s shares gained momentum after a deal to restructure its debt.
  • In addition, its results in the second quarter were better than expected by analysts. At this point, it is one of the most “loved” stocks on Wall Street.

Carvana short sellers have hit a very solid and high wall. It is that this class of investors lost more than 2,000 million dollars.

The reason? Carvana has risen steadily throughout the year and, to date, has accumulated an incredible gain of more than 1075% in 2023. Thus, it becomes a Wall Street favorite and the third most traded on the QuantFury broker.

On Wednesday, Carvana shares soared 40% after the announcement of a deal to restructure its debt. At the moment, its shares are trading at almost USD 57 when at the end of 2022 they were below USD 4.

CVNA short contraction will further tighten on bullish action,” Ihor Dusaniwsky, managing partner at S3 Partners, clarified to Yahoo Finance on Wednesday morning.

More short covering is expected today and over the next few days, as short sellers look for exit points to cut their exposure in a highly unprofitable trade,” added the expert.

On Wednesday alone, short sellers lost approximately $646 million and total $2.18 billion in 2023.

Short interest in Carvana sits at 47% of the outstanding float, a very high level compared to the rest of the market, S3 data showed.

Despite the incredible increase of more than 1075%, the share price is 85% below its ATH of 370 USD reached in August 2021.