"For a long investor, there's always the $10 plus accrued interest redemption price, so for short sellers shorting at $11 and change, it's an asymmetric bet against them because they won't really go too much below $10," he said."However, if IPOD or IPOF announces a deal that's at least equivalent to the SoFi deal, they could rally to $18 and change."
Along with rising short interests, the borrow fees for lending shares to short sellers have also gone up. The borrow fee for IPOE has jumped from 1.58%in December to a hefty 31.07% as of March 17, according to S3. "If you are heading into the vote and people want to redeem their shares, you can't maintain your borrow and your borrow will get pulled, then you'll have to cover," Klymochko said.
He believes that the slump in SPAC performance has a lot to do with the recent glut of supply, and the short interest is mostly focused on pre-deal SPACs that have traded up to lofty valuations based mostly on hype. "It's hard to see a sustainable rally in the market as long as we're having this tremendous amount of SPAC IPO issuance," he said."I thought it would settle down a bit, but even last week we had 24 SPAC deals raising $8.4 billion. That would be a really good month, let alone a week."
JulianKlymochko Poetic justice.
JulianKlymochko Chamath is the reason for spac crash ..his greed
JulianKlymochko I hate this clickbait..subscribe if you want to read..should be banned
This guy is a genuine conman.
They were pissed about $GME, but we will come rescue thee