$Circle Internet Corp.(CRCL)$ Clients who sold their shares at $65 based on the bearish downgrade missed out on $37.17 per share in pure profit in less than a month. For an institutional fund managing a standard 100,000-share position, that is over $3.7 million in vanished gains.
For clients who used the research to initiate short positions at $65, the situation is a catastrophic risk management failure. Because short losses are mathematically leverage-compounded as the price goes up, those accounts are down over 55% on their capital.
The ultimate irony here is how the Wall Street game is played. Now that the stock is trading firmly above $102, Morgan Stanley and the other ultra-bears will eventually be forced to update their financial models to reflect the higher token circulation, positive legislative progress, and raw price reality.
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