Biggest oil ETF USO’s woes have been real slick for short sellers

Biggest oil ETF USO’s woes have been real slick for short sellers

The United States Oil Fund LP, the biggest oil-related exchange-traded fund, has taken a shellacking amid a historical collapse in the oil prices.. Short sellers borrow shares of a security they think is likely to decrease in value.. Starting in late February, short sellers saw an opportunity, Dusaniwsky wrote.. "Short sellers went into overdrive, tripling their shares shorted with an additional 49.46 million shares.". Over the past week, an additional 6.50 million shares, or 10.9% of shares outstanding, have been shorted, even as it's starting to cost those traders more to borrow shares . ". Earlier coverage: Retail investors are getting 'hosed' with the biggest oil ETF down more than 30% this week.