'The shorts got torched': Epic squeeze sends Cettire shares soaring
Cettire's idiosyncrasies have made it one of the most volatile stocks on the ASX but the 79% gain in Tuesday's session was one for the record books.
It was one the most astonishing short squeezes for a major company seen on the ASX. And it was triggered by what would ordinarily be an innocuous development —auditors signing off on company accounts.
But Cettire is no ordinary stock. And the 79% upward move, which added around $400 million to its market cap on Tuesday, was exacerbated by both the large short positions in the stock and the relatively limited amount of free float available on market.
With 11.21% of the stock shorted and around 60% held by just three shareholders – in founder and CEO Dean Mintz, Phil King's Regal Partners, and Connecticut hedge fund Cat Rock – the volatility was on full display as auditors gave Cettire the all clear on its full-year results.
One trading desk described it as "serious carnage", telling Capital Brief they had never seen anything like it.
