Bearish wagers against SPACs have more than tripled in value in the last three years.

SPACs, which have been the belles of the ball for the past six months, are now in the crosshairs of short-sellers who are predicting that many of them will falter. According to S3 Partners, the cash amount of bearish bets against SPAC shares has more than tripled to $2.7 billion from $724 million at the start of the year.

According to The Wall Street Journal, several of the most popular SPACs have witnessed the greatest rise in short bets, including one created by venture financier Chamath Palihapitiya that aims to join with lending company Social Finance. 1 According to data from S&P Global Market Intelligence, 19% of SPAC's outstanding shares are sold short.

The SEC has issued a warning about celebrity SPACs.

On March 10, the Securities and Exchange Commission (SEC) issued a timely warning, warning investors that SPACs might be hazardous and that they should not participate in them just because they have a celebrity endorsement.

"However, celebrity involvement in a SPAC does not imply that investing in that SPAC or SPACs in general is appropriate for all investors," according to the SEC. "Just because someone famous supports or invests in a SPAC or says it is a smart investment, celebrities, like anybody else, might be enticed into participating in a risky investment or may be better able to sustain the risk of loss."

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