The BNPL space ran hot for a couple of weeks in late July as short covering appeared to throttle many “weak” traders however Zip has now seen its short position actually grow to over 9% of issued capital. Some of these shorts do relate to funding deals we believe but it still feels like someone’s going to get hurt here – but we’re happy to remain observers – the stock has already fallen -35% from last month’s high.
- Also Block Inc (SQ2) now has an even larger short position in excess of 11%, traders are certainly waging their money that the BNPL sector will die a slow and painful death.
MM has no interest in Zip
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