Copyright Benzinga
Investors searching for the next Beyond Meat, Inc. (NYSE:BYND) — the latest poster child for explosive short squeezes — are eyeing the most shorted stocks as potential candidates for outsized rallies. BYND stock is moving. See the real-time price action here. Short selling, where traders bet against a company’s stock, can lead to dramatic price surges if too many shorts scramble to cover their positions — a phenomenon seen with Beyond Meat, which saw short interest soar above 81% of its free float, according to Reuters. Read Next: Latest Beyond Meat Short-Seller? Martin Shkreli, Of Course What Makes A Stock Heavily Shorted? A stock is considered heavily shorted when a significant percentage of its available shares have been borrowed and sold by investors expecting a price drop. When news, momentum or coordinated buying sends prices higher, a short squeeze can force even more rapid buying. As short-sellers rush to cover their positions, eye-popping surges — like the meme stock manias seen recently with Opendoor Technologies, Inc. (NASDAQ:OPEN) and 2021's GameStop Corp. (NYSE:GME) rally — can occur. Top 10 Most Shorted Stocks Here are the most heavily shorted stocks (with market caps above $2 billion and floats above 5 million) as of Oct. 22, according to data from Finviz. Reminders: Highly shorted stocks are battlegrounds where negative fundamentals meet speculative trading. Short squeezes can deliver huge, fast gains, but at very high risk and volatility. Monitoring the short interest leaderboard can help identify which stocks might be the next short squeeze, but timing such trades remains extremely challenging. Always conduct due diligence, as the volatility often reflects deep underlying risks and business uncertainty. Read Next: Elon Musk Says Head Of NASA Has ‘2 Digit IQ’ — SpaceX’s Moon Deal Hangs In Balance Photo: Shutterstock
