Short sellers profit from bearish bets on European banks

Short sellers have built bearish positions worth over $15.7 billion against European banks, with hedge funds such as Marshall Wace and Odey Asset Management adding to short positions against Europe's banks. Short selling involves borrowing shares from a broker to sell them, with the expectation of buying them back at a lower price to make a profit. The collapse of Silicon Valley Bank sparked contagion fears and sent shares plunging, wiping off €120 billion ($126 billion) off the value of European bank shares in the week to Wednesday.