5 Biggest Short Squeezes of All Time

3. AMC Entertainment Holdings, Inc. (NYSE: AMC)

AMC Entertainment Holdings, Inc. (NYSE: AMC) is one of the few stocks presently embroiled in a short squeeze as retail investors offset hedge fund bets against the company. The firm primarily controls a movie theatre chain and has suffered in recent years as internet-based streaming services grab the lion’s share of the business and cinemas and theatre companies witness a rapid decline in revenue. 

On June 21, research by data analytics firm Ortex revealed that short-sellers of AMC Entertainment Holdings, Inc. (NYSE: AMC) stock had lost more than $500 million in a single day amid a rapid rise in the share price of the company. The stock has climbed more than 2,500% year-to-date and Ortex estimates that losses for AMC short-sellers had climbed above $1.2 billion in the last few weeks. 

Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in AMC Entertainment Holdings, Inc. (NYSE: AMC) with 5.6 million shares worth more than $57 million. 

In its Q1 2021 investor letter, Mittleman Brothers highlighted a few stocks and AMC Entertainment Holdings Inc. (NYSE:AMC) is one of them. Here is what the fund said:

“As noted in our Year End 2020 Investment Review (published on 2/1/21), we exited our position in AMC at around $14 during the last week of January. That price exceeded our then $10 estimate of fair value, as the stock went parabolic with the Gamestonk/Reddit/WallStreetBets frenzy that captivated the media, market and general population in January. As longterm shareholders, we were pleased that AMC’s CEO, Adam Aron, did not take the easy way out during AMC’s darkest days when the vast majority of the investment community were writing the company’s obituary. He showed loyalty to shareholders despite being in the zone of insolvency (where fiduciary duty to shareholders extends to creditors as well).”