Small Caps Crushed by Short Sellers as Investors Flee to Big Tech

Short sellers have reaped $13 billion in profits betting against small-cap stocks this year.

Small caps have underperformed the broader market, with the Russell 2000 up just 5% vs 16% for the S&P 500.

Small caps missed out on the AI stock rush that boosted mega-cap tech names like Nvidia and Tesla.

Investors pulled $1.5 billion from small-cap funds last week as the stocks were battered.

Shorts have piled into bets against small caps in the past month, targeting stocks like Archer Aviation and Air Transport Services.