- The WallStreetBets forum on Reddit â€” now 3 million members strong â€” is flexing its muscle against hedge funds.
- The forum has sparked an epic short squeeze in shares of GameStop, which is now spilling over into other highly shorted stocks.
- Detailed below are the 10 highly shorted stocks that are soaring at the expense of many hedge funds.
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An extreme level of herd mentality led by Reddit’s 3 million member strong WallStreetBets forum has sparked an epic rally in the most shorted stocks in the market.
The forum, members of which refer to each other as “degenerates” and create “meme stocks”, first targeted shares of GameStop, buying deep out of the money calls which created unprecedented demand for shares.
The ensuing 1,784% year-to-date rally in GameStop has led to massive losses for certain hedge funds that were short the stock, including Melvin Capital, which lost more than 30% and received an emergency $US2.8 billion investment from Point72’s Steve Cohen and Citadel’s Ken Griffin.
Now, some traders are setting their eyes on other highly shorted stocks in the market, hoping to replicate the success of GameStop and cause pain for Wall Street hedge funds that are on the opposite side of the trade.
Detailed below are the 10 most-shorted stocks that are soaring at the expense of many Wall Street hedge funds.
10. National Beverage Corp
Ticker: FIZZ% of Float Short: 63% YTD Rally: 131%
9. iRobot Corp
Ticker: IRBT% of Float Short: 63% YTD Rally: 146%
8. Virgin Galactic Holdings
Ticker: SPCE% of Float Short: 64% YTD Rally: 150%
7. Children’s Place
Ticker: PLCE% of Float Short: 65% YTD Rally: 50%
6. Tanger Factory Outlet Centres
Ticker: SKT% of Float Short: 71% YTD Rally: 110%
5. Bed Bath & Beyond
Ticker: BBBY% of Float Short: 84% YTD Rally: 204%
Ticker: MAC% of Float Short: 88% YTD Rally: 144%
3. AMC Networks
Ticker: AMCX% of Float Short: 94% YTD Rally: 104%
2. Ligand Pharmaceuticals
Ticker: LGND% of Float Short: 106% YTD Rally: 100%
Ticker: GME% of Float Short: 261% YTD Rally: 1,917%
All short interest data is as of December 31 and was sourced from Yahoo Finance. YTD data as of Wednesday’s intra-day highs.