A trader operating under the handle VBVIT has amassed the largest known short position against SpaceX, valued at $29 million. The bet comes as the private rocket company continues to dominate the launch market and push toward Mars, but VBVIT is wagering the other way — that SpaceX stock will fall.
Who is VBVIT?
The identity behind the VBVIT handle isn't publicly known. The trader has not issued any public statements or explanations for the position. What is clear from financial data is the size: $29 million in short exposure to SpaceX. That makes it the single biggest bearish position on the company that anyone has disclosed so far.
Shorting a private company
Short selling is common for publicly traded stocks, where investors borrow shares and sell them, hoping to buy them back cheaper later. But SpaceX isn't listed on any exchange. To short a private company like SpaceX, traders typically use contracts for difference or other derivatives tied to the company's valuation in secondary markets. Those markets are opaque, and the exact mechanism VBVIT used isn't specified in the available data.
The size of the bet — $29 million — is notable even by public-market standards. For a private company with an estimated valuation above $200 billion, the short position represents a fraction of a percent. But it's still a concentrated wager that SpaceX's value will drop.
What could go wrong
Shorting a high-growth private company comes with outsized risk. SpaceX has consistently raised money at higher valuations, most recently in a tender offer that pegged its worth at roughly $210 billion. The company's Starlink satellite internet business is generating revenue, and its Starship rocket is years ahead of competitors. If SpaceX hits another funding round or goes public at a premium, VBVIT could face severe losses.
There's also the matter of time. Short positions on private companies often carry expiration dates or margin requirements that can force a trader to close early. Without knowing the terms of VBVIT's trade, it's impossible to say how long the bet can stay open.
The unanswered question
What drove VBVIT to take the largest known short on SpaceX? The trader isn't talking. The position could be a hedge against a broader space-sector downturn, or a pure speculative play. For now, the $29 million wager sits as a lonely bearish voice in a market that has only seen SpaceX's value climb. Whether it pays off depends on what happens next — and when.
