Short-selling investors have amassed paper profits approaching $3.88 billion on shares of SpaceX, according to data from S3 Partners. The stock has been under pressure, trading near its $135 IPO price and heading for a fourth day of losses, dipping as low as $132.15.

This surge in bearish sentiment comes as the company, led by Elon Musk, faces a significant rocket launch and upcoming earnings report. These events are expected to release a substantial volume of shares into the market, potentially impacting the stock's valuation.

SpaceX, involved in rockets, satellites, and artificial intelligence, is currently experiencing increased scrutiny from short-sellers who are betting on a decline in its share price.