Short sellers load up against SpaceX as stock drops below IPO price

Short sellers have piled into SpaceX, with approximately 185 million shares now sold short—representing roughly 29% of the company's publicly tradable float, according to S3. The stock has fallen below its IPO price, triggering a surge in bearish positioning as traders bet on further downside.

The short interest level of 29% marks an aggressive bearish stance, placing SpaceX among the most heavily shorted names relative to its available float. Short sellers typically target companies facing fundamental headwinds or valuation concerns, and the concentration of bets against SpaceX suggests institutional conviction that the current price hasn't found a floor.

The stock's decline below its initial public offering price represents a psychological breach for investors who entered at the IPO or higher levels, potentially creating additional selling pressure as those positions move underwater.