GameStop (GME) shareholders believe that heightened short positions in financial and banking stocks could set up GME for a short squeeze. Indeed, the short interest in GME as of Feb. 28 was 22.1%, one of the highest percentages in 8 years. Many investors are now turning to SVB Financial Group (SIVB) subsidiary Silicon Valley Bank, as it is believed to have a possible connection to GME’s success.
Hedge funds have been selling off financial and banking stocks, increasing their bearish bets on banks over the past 9 weeks. Vanguard and BlackRock remain the largest shareholders of SIVB, controlling a 0.04% and 0.03% of its portfolio respectively. These two companies, according to GME shareholders, will be forced to hedge their positions by selling out of long positions and recalling short GME shares due to their losses in SV