BlockBeats news, on April 23, according to Coindesk, traders shorting MicroStrategy (MSTR) may be facing a stock shortage dilemma, as MSTR's stock price rose 13% in March, making it difficult for short positions to timely cover their stocks to return to brokers. According to data from the U.S. Securities and Exchange Commission (SEC) and Fintel, trades worth over $180 million in MSTR stock last month failed to complete the Delivery. This "Failure to Deliver" (FTD) phenomenon typically occurs when the seller fails to deliver the stock by the T+1 settlement date. Delivery failures may stem from operational errors or latency in the settlement system, but they may also suggest that short positions are facing "restocking difficulties"—when shorts sell borrowed stocks and the stock price rises instead of falling, they need to buy back the stock at a higher price to return it to brokers. This situation often signals significant fluctuations in stock prices are imminent. Currently, the short positions for this stock remain at a high level. Fintel data shows that as of April, short holdings were approximately 29 million shares, accounting for over 12% of the outstanding shares.
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Analysis: The $180 million MSTR delivery failed to complete in March, and the stock price may experience significant fluctuations.
BlockBeats news, on April 23, according to Coindesk, traders shorting MicroStrategy (MSTR) may be facing a stock shortage dilemma, as MSTR's stock price rose 13% in March, making it difficult for short positions to timely cover their stocks to return to brokers. According to data from the U.S. Securities and Exchange Commission (SEC) and Fintel, trades worth over $180 million in MSTR stock last month failed to complete the Delivery. This "Failure to Deliver" (FTD) phenomenon typically occurs when the seller fails to deliver the stock by the T+1 settlement date. Delivery failures may stem from operational errors or latency in the settlement system, but they may also suggest that short positions are facing "restocking difficulties"—when shorts sell borrowed stocks and the stock price rises instead of falling, they need to buy back the stock at a higher price to return it to brokers. This situation often signals significant fluctuations in stock prices are imminent. Currently, the short positions for this stock remain at a high level. Fintel data shows that as of April, short holdings were approximately 29 million shares, accounting for over 12% of the outstanding shares.