Short sellers made $848 million betting against First Republic Bank amid the turmoil in March, making it the month's most profitable short trade

• Short bets on First Republic shares were the most profitable short in March, according to data from Ortex.
• Traders made $848 million betting against the shares, which plunged 89% last month.

First Republic Bank was a big target of short sellers last month over fears the lender would be next to fail after Silicon Valley Bank and Signature Bank – and those bets turned out to be the most profitable short trade in March, according to financial analytics firm Ortex.

Short-sellers made $848 million in gains wagering on a fall in First Republic Bank shares, Ortex said Tuesday in its March recap note. The haul was generated as the stock price sank on worries the San Francisco-based lender "could fall victim to the same forces that caused Silicon Valley Bank and Signature Bank to collapse," Ortex said.

Shares in the company eventually closed March down by 89% at $13.99. The stock fell to all-time lows during the month as investors sought out banks that could be subject to bank runs similar to the one that led to the abrupt collapse of Silicon Valley Bank. About 68% of First Republic Bank's deposits, or nearly $120 billion, were not insured, according to the annual filing with the Securities and Exchange Commission.

First Republic landed a $30 billion rescue package from group of 11 banks, including JPMorgan and Bank of America, to prevent it from becoming the third US bank failure of 2023.

JPMorgan CEO Jamie Dimon said Tuesday the turmoil in the US banking systems isn't over yet.

Shares of First Republic fell by more than 4% as trading got underway on Tuesday.

Meanwhile, short sellers didn't fare well with bets against Apple last month. Bears lost $1.8 billion, the biggest losing short trade in March, Ortex said. Shares of the tech giant climbed 12% in March and have gained roughly 27% since the start of 2023.