Short sellers heavily bet on a crash in crude oil, most facing severe setbacks

MeNews · 2026-04-09T22:19:40+00:00

A group of crude oil traders heavily shorted bets on falling oil prices, resulting in most incurring losses. ETF investors poured a record $977 million into SCO, but the fund still fell 41% in March. Meanwhile, long-position funds also set records, and the market showed high polarization.

MeNews

2026-04-09 22:19:40

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ME News, April 2 (UTC+8): A group of crude oil traders massively went short, betting that oil prices would fall back from war-driven highs, but so far most traders are taking a severe hit. Data shows that in March, ETF investors poured $977 million into the ProShares UltraShort Bloomberg Crude Oil ETF (SCO), marking the largest monthly inflow since the fund was established in 2008. SCO provides a daily return equal to twice the inverse of crude oil price movements. Despite record inflows, SCO’s total assets are still only $970 million, lower than the total inflow for the month.

Asym 500 founder Rocky Fishman said, “This is a bet that ‘the war will end soon.’” After Trump President again hinted that the Iran war might end, the fund rose 8%, but it still fell 41% in March, recording its worst performance in nearly six years. However, short bets are only half the picture—long funds also set records. The US Oil Fund (USO) attracted about $700 million in March, the largest single-month inflow since the pandemic, while the US Brent Crude Oil Fund (BNO) pulled in $600 million, hitting an all-time high. The market is highly polarized, with leveraged funds hedging positions on both sides. (Jin10) (Source: ODAILY)

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