Venture capitalist Chamath Palihapitiya.
Mark Kauzlarich/Bloomberg via Getty Images
Blank check funds are hot. Wall Street investors are increasingly betting against them.
Short positions in special purpose acquisition companies, or SPACs, is at $2.7 billion, more than triple the $765 million at the end of 2020, according to S3 Partners, which tracks financial data.
Unlike a typical stock investor, short sellers profit when a company’s stock price declines.
Short interest has risen as SPAC shares have rallied, according to S3. There’s been significant interest among traders to get such exposure in an overbought area of the market, the firm said.
SPACs are kind of like…