SPCX jumps 10% after hours, forcing Formula founder Vida out of short

Vida said he closed a roughly $200,000 SPCXUSDT perpetual short for a loss of more than $60,000, while maintaining the company remains extremely overvalued.

Summary

SPCX rose 10% in after-hours trading, lifting its market value above Amazon to $2 trillion and prompting Formula News founder Vida to close a bearish trade at a loss. Vida disclosed on June 11 that he had opened a roughly $200,000 SPCXUSDT perpetual short position, and said on June 16 that he exited with a final loss of more than $60,000. He added that he still considers the company extremely overvalued and is watching for a possible future entry after employees' 20% stake unlocks. Perpetual contracts are derivatives that let traders take leveraged long or short exposure without an expiry date, which can magnify losses when prices move sharply against a position.

Terms & Concepts
  • short position: A trade that aims to profit from a decline in an asset's price.
  • SPCXUSDT perpetual: A perpetual futures contract pairing SPCX with USDT that allows traders to bet on price moves without a set expiration date.
  • stake unlock: The release of previously restricted tokens or shares so they can become transferable or tradable.