Short sellers have dramatically increased their bets against SpaceX, with nearly a third of its tradable shares now sold short. Despite initial paper profits, a recent stock rebound has led to substantial losses for these bearish investors. This surge in short interest, unusual for a new public company, could fuel further volatility and potentially trigger a short-covering rally as investors rush to limit their mounting losses.

Elon Musk speaks at Starbase before SpaceX's IPO in in Starbase, Texas, U.S., June 12, 2026. CNBCSpaceX shares are on the mend after a 35% pullback from its post-IPO high and…

Short sellers have dramatically increased their bets against SpaceX, with nearly a third of its tradable shares now sold short. Despite initial paper profits, a recent stock…