Traders are betting against SpaceX just weeks after its record IPO. Shares fell below the $135 listing price, down 40% from a $225 intraday high after the company raised $86bn at a near $2tn valuation.

Short sellers have booked about $4bn in paper profits; roughly 30% of the 640 mn tradable shares are borrowed for shorting, up 10 points in ten days. Analyst Dec Mullarkey says enthusiasm has cooled and equities and bonds now price in more risk.

The sell‑off coincides with a broader tech downturn. Up to 900 mn additional shares may unlock in August when lock‑ups expire, prompting hedge funds to cash out. One fund made $20 mn shorting the stock in early July.

Debt markets also signal worry. SpaceX’s $25bn bond issue yields have risen to 7.4% from 6.7%, pushing prices to ~91% of face value. Credit‑default swaps trade at 158 basis points, up from 110 at end‑June.