The recent increase in stock prices is intensifying the challenges faced by short-sellers, who are poised to experience their most significant annual losses since 2020, as reported by Ortex, a data and analytics firm.
Short-sellers, who seek to make a profit by selling shares they’ve borrowed and repurchasing them later at a reduced price, have incurred losses exceeding $145 billion this year. This figure is based on Ortex’s examination of short interest in 1,500 U.S. stocks.
The stock market index has risen by 22.9% so far this year and is just approximately 2% shy of reaching an all-time high.
In terms of short interest, there was an increase of $9.8 billion over the course of the year. To provide context, in 2020, short interest surged by $95.84 billion, leading short-sellers to face losses amounting to $182.65 billion.
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