S3 Partners', a financial technology and analytics firm, Managing Director of Predictive Analytics Ihor Dusaniwsky highlights increasing downside momentum in General Electric (NYSE: GE), as shares have fallen nearly 35% year-to-date, approaching price levels not seen, since the financial crisis a decade ago.

New CEO John Flannery is appealing to wall-street, investors and rating agencies, hoping to convince GE stakeholders that new initiatives focused on launching new businesses around aviation, alternative and renewable energy, while repairing the balance sheet through debt reduction and non-core asset divestitures, will spark growth. However, GE CEO's plans are facing multiple near-term headwinds according Dusaniwsky, commenting that "the radical downsizing has hit some snags particularly strong pricing pressure and low domestic demand for its gas turbines. S&P Global Ratings has put GE’s A rating on negative credit watch, expecting to downgrade once the health spinoff gets completed."

Bearish market participants in GE have pounced on the company's missteps, boosting short positions by 10% or $123 million over the last month and increasing shares short by 23% or 22.5 million shares during the same period to 119.10 million shares short. GE is now the second most profitable short-position this year, behind AT&T (NYSE: T), according to S3 Partners, earning bearish investors $673 million, a return of 36%.

The latest negative headline coming from GE regarding malfunctioning turbine blades, has one analyst projecting "weaker results" in the power division. Another downside catalyst should allow short-sellers to maintain their bets against GE, as shares accelerate towards $10, leaving CEO John Flannery to convince institutional investors to keep the faith, despite seeing half of GE's market capitalization disappear in the last 12 months.