Heavily shorted stocks

Heavily shorted stocks are shares that many investors are betting will decrease in value. These investors borrow shares and sell them, hoping to buy them back later at a lower price, profiting from the difference. When a stock is heavily shorted, it indicates widespread negativity or skepticism about the company's prospects. However, if the stock's price unexpectedly rises, short sellers can face significant losses—a situation called a "short squeeze"—which can cause rapid price increases as they rush to buy back shares to limit losses.