New Delhi, July 22 -- SpaceX's short position is a well-known fact by now.

About 206 million SpaceX shares have been sold short, as per S3 Partners data. In fact, the number of bearish bets rose very fast -from about 185 million shares last week to around 40 million shares just a month ago.

And currently, short positions account for about 32% of the company's publicly traded shares, valued at roughly $25 billion.

However, the shares bounced back on Tuesday, climbing as much as 7% after Macquarie reaffirmed its "outperform" rating, saying the recent selloff had created an attractive buying opportunity. So are short sellers trapped now, or should they keep their short positions?

The short position on SpaceX suddenly grew. In fact, many ...