- SVB Financial Group’s record plunge on Thursday minted short sellers roughly half a billion dollars in paper profits.
- The stock fell another 63% in premarket trading Friday before being halted, with the Federal Deposit Insurance Corp. ultimately announcing that it had seized the bank.
- The SVB collapse comes just a day after crypto-friendly bank Silvergate Capital Corp.’s announcement that it would liquidate and voluntarily wind down operations of its bank.
Short Sellers Make $500 Million on SVB’s Demise. Collecting Won’t Be Easy
Short sellers made $500 million in paper profits when SVB Financial Group’s stock plunged. Silvergate Capital Corp. also announced liquidation, amassing short sellers a $780 million payday.