SVB Financial Group’s stock plunged by nearly 60 per cent on Thursday, netting traders who bet against the stock a one-day mark-to-market profit of roughly $513 million. The stock fell another 63 per cent in premarket trading Friday before being halted, with the Federal Deposit Insurance Corp. ultimately announcing that it had seized the bank. Short sellers now face the challenge of how to close their positions and realize their profits, with stock borrow financing costs accruing daily, even on weekends.
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