Short Sellers Face Squeeze as Risky Bets on Struggling Startups Backfire
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Several of the most-shorted stocks are struggling EV startups like VinFast, Fisker, and Faraday Future with high valuations but uncertain futures.
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Heavily shorted biotech and software stocks like Soleno Therapeutics, Novavax, C3.ai, and Upstart Holdings have seen huge rallies in 2023, fueling short covering.
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Food maker Beyond Meat, used car dealer Carvana, and shopping center REIT Wheeler are deeply in the red and continue to lose money.
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Tesla is the largest shorted stock by number of shares, but low as a percentage of float. TSLA stock has surged over 100% in 2023.
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Heavily shorted stocks often have weak fundamentals but can see massive squeezes as shorts rush to cover.