Infinite money glitch. Buy IPO & Short Pre-IPO

Investor summaryBullish

Author thinks shorting SPCX pre-IPO at $160 and buying the IPO at $135 is a risk-free arbitrage glitch.

Bull points

Pre-IPO market price ($160) is higher than the IPO price ($135), creating a theoretical arbitrage opportunity.
Can lock in the higher pre-IPO price by shorting before the IPO.

Bear points

Ignores the 30-day lock-up period risk where the stock price could drop significantly below $135 after IPO.
Pre-IPO shorting involves high borrow costs, liquidity risks, and counterparty risks not mentioned by the author.

Post body

So there is a pre-ipo market for SPCX trading around $160.

The IPO is $135.

So isn’t it a free arbitrage to just ask for some SPCX shares from your broker, short at $160 on “you know what” and profit off the difference.

Only rules are you need to hold for 30 days before selling.

Why isn’t everybody doing this?

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