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Dillon Loomis claims speculation that much of $SPCX short interest comes from…

2026-08-04 · 19:32 UTC ·@DillonLoomis ·1 min read

Brief

Dillon Loomis argues the surge in $SPCX short interest is unlikely to be insiders hedging because the SpaceX Lock‑Up Agreement filed with the SEC prohibits short selling by insiders with locked shares. He concludes shorts are probably directional bets ahead of expected new free‑float supply this week; ZeroHedge cites 95% of borrowable stock on loan (34% short interest).

Why it matters

Dillon Loomis claims speculation that much of $SPCX short interest comes from SpaceX insiders who previously shorted their locked shares to 'lock in' higher prices.

Key details

  • Loomis cites the SpaceX Lock‑Up Agreement filed with the SEC, which he says prohibits short selling by insiders with locked shares, and therefore argues shorts are more likely directional bets ahead of new supply entering the free float this week; ZeroHedge reports 95% of borrowable SpaceX stock is on loan, equating to 34% short interest of the float.
Source evidence

On the $SPCX short squeeze situation - there's speculation that much of the short interest right now is from the SpaceX insiders with locked shares that shorted their shares previously (when prices were higher) to lock in those prices by borrowing shares and selling them (securing the cash when the prices were higher). Then after the lockup expires, they would use their underlying shares to close the short

The problem with this is that in the SpaceX Lock-Up Agreement filed with the SEC it says that short selling is prohibited for these insiders with locked shares

So rather than the assumption that most of the shorting is SpaceX insiders hedging, it seems more likely it's just directional bets on downward pricing given the new supply expected to enter the free float this week @EmmetPeppers @TeslaBoomerMama

zerohedge (@zerohedge)

Massive SPCX shorting ahead of earnings: 95% of SpaceX stock available to borrow is out on loan, amounting to 34% short interest as percentage of the float: S3

— https://nitter.net/zerohedge/status/2084618721079734585#m