XL - SPACs catch the attention of short sellers

One of the hottest growth areas on Wall Street, special-purpose acquisition companies, is becoming a target for short sellers, WSJ reports. In fact, the dollar value of bearish bets against shares of SPACs has more than tripled to about $2.7B from $724M at the start of the year, according to data from S3 Partners.Some examples: Social Finance (SOFI) is a popular target, with 19% of its outstanding SPAC (IPOE) shares sold short, while short interest in Churchill Capital Corp. IV (CCIV), a SPAC that is merging with EV startup Lucid Motors, more than doubled in March to about 5%. Others are wagering against companies after they combine with SPACs, like Muddy Waters's bet against XL Fleet (XL). Shares of Lordstown Motors (RIDE) also stumbled 17% on Friday after Hindenburg Research released a report saying the EV startup misled investors on its orders and production."These are all momentum stocks, and a

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SPACs catch the attention of short sellers