While Muddy Waters bets against dLocal, here are the other fintech stocks that short sellers are eyeing

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At least 11 other US-listed financial technologies companies have more than 10% of their shares betting on a decline in its price.

While hedge fund Muddy Waters revealed a bet against payment processor dLocal , other short sellers appear to be eyeing several fintech companies. At least 11 U.S.-listed financial technologies companies each have more than $500 million betting on a decline in their share price, according to data from S3 Partners. Short-sellers profit when stocks fall. They borrow shares to sell them immediately with a plan to repurchase them when the price is lower and pocket the difference.

Meanwhile, S3's data also revealed that, among FINX stocks, cryptocurrency exchange Coinbase saw the largest increase in short selling for the month up to Nov. 15. It comes despite a decline of about 80% in its stock price this year. "Shorts were maintaining their exposure in this basket of stocks even though there was a marked mark-to-market decline in their shares shorted – they were not shorting into a declining sector," said Ihor Dusaniwsky, managing director at S3.

 

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