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Jim Chano, a well-known short seller on Wall Street, said he began shorting the AMC cinema chain (AMC.US), a Meme stock, on Monday. Chanos said he bought AMC preferred stock (APE.US) and resumed shorting AMC common stock on Monday after shorting AMC cinema last year.

AMC cinema closed down 8.60% on Tuesday, while AMC preferred shares closed up 17.00%, according to the data. Currently, the proportion of short positions in AMC theaters is 18.5 per cent.

AMC Cinema previously announced a special "APE" dividend in the form of AMC preferred shares (AMC Preferred Equity Units), and AMC will give each AMC common share a preferred share. The preferred shares began trading on the New York Stock Exchange on Monday. This new stock class is in some ways similar to a stock split.

Earlier on Tuesday, Wedbush analyst Alicia Reese maintained his "outperform" rating on AMC cinemas and lowered his target price to $2 from $4, citing the split effect of APE when it started trading.

Chanos also revealed that he also shorted Zoom (ZM.US). Zoom fell 16.54 per cent on Tuesday, and its second-quarter results after trading on Monday showed that Q2 revenue rose 8 per cent year-on-year to $1.1 billion, down from 12 per cent in the previous quarter and slightly below analysts' consensus expectations of $1.12 billion. In addition, Zoom lowered its full-year earnings forecast, cutting its full-year revenue forecast from $45.3-$4.55 billion to $43.9-$4.4 billion and adjusted earnings per share from $3.70-$3.77 to $3.66-$3.69.