Insider Selling Analysis

When sponsors and insiders dumped their shares — and what retail investors were left holding.

The Incentive Asymmetry

SPAC sponsors typically risk just ~$25,000 to receive 20% of the post-merger company— the infamous “promote.” This creates an enormous incentive to complete any deal, regardless of quality, and sell as soon as lockup periods expire.

The Wall Street Journal found that 232 of 460 de-SPACs had insiders with significant post-merger stock sales. Lockup periods typically last 6–12 months after the merger closes, after which sponsors are free to sell.

Many sponsors sold at or near peak prices while retail investors held through devastating declines — sometimes losing 90%+ of their investment. The pattern is systematic: sponsors profit, retail pays.

SPACs Analyzed

96

With known sponsors

Insiders Sold During Decline

71.9%

69 of 96

Avg Return When Sold

-86.1%

Retail investors' outcome

Est. Insider Proceeds

$3.6B

Modeled promote value

Price Trajectory & Insider Selling

Select a SPAC to see its price trajectory with modeled insider sell point marked.

Near Intelligence

NIR · Merged 2023 · Peak $8 → $0

🔴 Insider sold ~$3.62

Lockup expired at month 7

🔴 Orange dot = modeled insider sell point (lockup expiration)

Sponsor Selling Leaderboard

Sponsors ranked by frequency of insider selling during price decline windows.

SPACs Where Insiders Sold During Declines

50 SPACs with modeled insider selling during major price declines

CompanySponsorReturnPeakEst. SellCurrentStatusLockup
Near IntelligenceNIRKludeIn Acquisition Corp-100%$8$3.62$0bankrupt7mo
Fast RadiusFSRDECP Environmental Growth Opportunities Corp-100%$10.5$6.84$0bankrupt11mo
WeWorkWEBowX Acquisition Corp-100%$13.18$5.55$0bankrupt8mo
23andMeMEVG Acquisition Corp-100%$17.65$7.33$0bankrupt6mo
Bird GlobalBRDSSwitchback II Corp-100%$14$9.47$0bankrupt9mo
VoltaVLTATortoise Acquisition Corp II-100%$14.5$6.25$0bankrupt12mo
Electric Last Mile SolutionsELMSForum Merger III Corp-100%$15$11.68$0bankrupt9mo
Enjoy TechnologyENJYMarquee Raine Acquisition Corp-100%$10.93$7.19$0bankrupt9mo
EnovisENOVDFP Healthcare Acquisitions Corp-100%$12$7.05$0bankrupt10mo
Landsea HomesLSEALF Capital Acquisition Corp-100%$10.5$6.87$0bankrupt8mo
LatchLTCHTS Innovation Acquisitions-100%$17.78$7.56$0delisted12mo
Cazoo GroupCZOOAJAX Financial Alternatives-100%$12.5$9.31$0bankrupt11mo
Arrival SAARVLCIIG Merger Corp-100%$36$22.96$0bankrupt7mo
Wejo GroupWEJOVirtuoso Acquisition Corp-100%$16$12.14$0bankrupt9mo
Cyxtera TechnologiesCYXTStarboard Value Acquisition Corp-100%$12.5$10.05$0bankrupt12mo
HeliogenHLGNAthena Technology Acquisition Corp-100%$12$7.15$0bankrupt6mo
NikolaNKLAVectoIQ Acquisition Corp-100%$93.99$67.64$0bankrupt8mo
FiskerFSRSpartan Energy Acquisition Corp-100%$31.96$13.13$0bankrupt12mo
HyliionHYLNTortoise Acquisition Corp-100%$58.66$48.14$0bankrupt8mo
Lordstown MotorsRIDEDiamondPeak Holdings-100%$31.8$13.32$0bankrupt9mo
Lion ElectricLEVNorthern Genesis Acquisition Corp-100%$35.09$27.43$0bankrupt12mo
CanooGOEVHennessy Capital Investment Corp IV-100%$24.9$13.68$0bankrupt7mo
Eos EnergyEOSEB. Riley Principal 150 Merger Corp-100%$32.28$15.73$0bankrupt8mo
ViewVIEWCF Acquisition Corp VIII-100%$13.5$5.86$0bankrupt11mo
Desktop MetalDMTrine Acquisition Corp-100%$34.94$19.27$0delisted11mo
MetromileMILEINSU Acquisition Corp II-100%$19.49$16.29$0delisted7mo
Whole Earth BrandsFREEAct II Global Acquisition Corp-100%$14$6.64$0acquired8mo
MomentusMNTSStable Road Acquisition-100%$27.5$15.79$0delisted12mo
Faraday FutureFFIEProperty Solutions Acquisition Corp-99.99%$16.88$11.98$0.01zombie7mo
Mullen AutomotiveMULNNet Element (reverse merger)-99.99%$15.9$7.37$0.01zombie11mo
The Parent CompanyTPCOSubversive Capital Acquisition Corp-99.9%$12.5$5.09$0.01delisted9mo
Better Home & FinanceBETRAurora Technology Acquisition-99.5%$69.98$51.4$0.75zombie7mo
Danimer ScientificDNMRLive Oak Acquisition Corp-99.2%$64.8$33.32$0.5zombie7mo
GetaroundGETRInterPrivate II VSM Tec-99%$38$30.65$0.1bankrupt12mo
BeachbodyBODYForest Road Acquisition Corp-98.9%$14$7.02$0.15delisted7mo
Velo3DVLDJAWS Healthcare Innovators Acquisition Corp-98.9%$11$5.09$0.12delisted9mo
Astra SpaceASTRHolicity Inc-98.8%$16.95$9.55$0.2zombie7mo
Virgin GalacticSPCESocial Capital Hedosophia Holdings-98.5%$62.8$45.55$6.4zombie11mo
Banzai InternationalBNZI7GC & Co Holdings-98%$50$20.41$0.5zombie9mo
PolestarPSNYGores Guggenheim-98%$13$7.62$0.21zombie7mo
REE AutomotiveREE10X Capital-98%$30$19.11$0.5zombie7mo
Greenidge Generation HoldingsGREESupport.com (reverse merger)-97.5%$60$24.87$1.5zombie12mo
Ginkgo BioworksDNASoaring Eagle Acquisition-97.5%$14.96$10.35$0.25zombie12mo
Advent TechnologiesADNAMCI Acquisition Corp-97%$26$14.92$0.3zombie11mo
BuzzFeedBZFD890 Fifth Avenue Partners-97%$14.8$9.2$0.5zombie7mo
QuantumScapeQSKensington Capital-97%$132.73$94.86$4.5zombie12mo
AEyeLIDRCF Acquisition Corp VIII-95%$17$13.26$0.5zombie12mo
OwletOWLTSandbridge Acquisition Corp-95%$17$12.86$0.8zombie9mo
Butterfly NetworkBFLYLongview Acquisition Corp-92%$29.19$14.22$0.8zombie7mo
Microvast HoldingsMVSTTuscan Holdings-91%$23$9.79$0.9zombie7mo

⚠️ Methodology Note

MODELED DATA — These figures are synthetic estimates based on public SPAC characteristics (return %, status, trust size, merger timing) and typical insider selling patterns. They do NOT represent actual SEC Form 4 filing data. Selling probabilities are modeled based on lockup expiration timing and stock performance patterns documented in academic research and WSJ reporting.