Martin Shkreli's Biotech Short Position Is Blowing Up As Stock Soars 440%: Momentum Score Spikes - Capricor Therapeutics (NASDAQ:CAPR)

Core Viewpoint - Investor Martin Shkreli's short position against Capricor Therapeutics has faced significant challenges following a major stock rally due to positive clinical trial results for its Duchenne Muscular Dystrophy treatment, Deramiocel [1][4]. Group 1: Company Overview - Capricor Therapeutics, based in California, focuses on developing therapies for Duchenne Muscular Dystrophy, with its primary asset being the HOPE-3 cell therapy [1]. - The company recently cleared a major regulatory hurdle, demonstrating strong evidence that Deramiocel can significantly improve the condition of patients with Duchenne muscular dystrophy [1]. Group 2: Stock Performance - Following the positive results from the phase-3 HOPE-3 trial, Capricor's stock surged by 440% in a single day, which adversely affected Shkreli's short position that anticipated a stock price around $2 per share [4]. - The stock's momentum score in Benzinga's Edge Rankings increased dramatically from 3.83 to 96.4 within a week, indicating a significant rise in trading volume and volatility [5]. Group 3: Market Reaction - The stock's momentum score spike reflects a broader market reaction to the positive clinical trial results, which often leads to increased investor interest and trading activity [3]. - The favorable price trend of Capricor's stock is noted across short, medium, and long-term time frames, suggesting sustained investor confidence [5].