Story perspectives
DraftKings Faces $7B Loss Amid Shorting Concerns
10/7/2025
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Story summary
- Spruce Point Capital Management shorted DraftKings’ stock, citing rising prediction-market risks and DraftKings’ position.
- DraftKings and Flutter Entertainment lost $7 billion in market cap after Kalshi launched its same-game parlay product.
- Spruce Point projects 35-60% downside risk for DraftKings, targeting a $31-$39 share price.
- Analysts disagree on Kalshi’s impact; Spruce Point says it drains from DraftKings, Entain warns UK tax risk.
