Under Armour short-sellers made $130 million in a single day on the company's new accounting probe - and it erased their losses for the year

• Traders betting against Under Armour Class A shares wiped out their losses for the year on Monday after the company's stock plunged following the announcement of a two-year accounting probe.
• According to data from financial analytics provider S3 Partners, Under Armour short-sellers made $130 million in mark-to-market paper gains on Monday after shares fell more than 17%.
• With close to $820 million in short interest, Under Armour is the second most shorted stock in the Apparel, Accessories, and Luxury sub-industry, according to S3 data.
• Watch Under Amour trade live on Markets Insider.

Under Armour short-sellers notched a huge win on Monday after the company's shares plummeted more than 17% following the announcement of a two-year accounting probe.

According to data from financial analytics provider S3 Partners, traders betting against Under Armour Class A shares made $130 million in mark-to-market paper gains on Monday, erasing their losses for the year.

Here's a chart comparing the change in short interest to Under Armour's share price:

Under Amour Class A shares have almost $820 million in short interest, making the stock the second-most shorted in the Apparel, Accessories, and Luxury sub-industry, according to S3 data.

The sports apparel company's shares wiped out their gains for the year and are currently sitting down about 3% following Monday's announcement.

The company said it began cooperating with federal authorities in 2017 to provide documents and information for a criminal inquiry into its accounting and disclosure practices.

Aside from the probe, Under Armour also lowered its full-year sales outlook citing traffic and conversion challenges, lower than expected excess inventory for its off-price segment, and negative impacts from foreign currency.