Short sellers build 13% short interest in SK Hynix U.S. shares weeks after debut

Price Action

Summary · why it matters

Short sellers have rapidly built bearish positions in SK Hynix's newly listed American depositary receipts, with about 23 million ADRs now sold short, according to S3 Partners. That represents nearly 13% of the roughly 178 million ADRs in the public float, far exceeding the exchange-reported figure of about 15 million shares in mid-July. The buildup comes as the ADRs have fallen about 13% from their $149 offering price since their July 10 debut, and roughly 33% from their post-listing peak, amid sharp swings in semiconductor stocks. The PHLX Semiconductor Index is down more than 22% this month alone, and SK Hynix shares tumbled Wednesday despite reporting explosive second-quarter results. Part of the short interest may reflect arbitrage activity rather than outright bearish bets, with some investors shorting ADRs while holding the underlying Seoul-listed shares to exploit price differences.