Short sellers have lost more than $175 billion betting against US stocks after investor mania for AI fueled an unexpected tech rally.
The surge in tech stocks led to $175.2 billion in mark-to-market losses for short sellers year-to-date, with $53.5 billion of it stemming for July alone.
According to data from S3 Partners, only 30% of every shorted stock was a profitable trade for investors this year.
“US/Canada equity short sellers started out 2023 with large mark-to-market losses in January, followed by four months of profits, and now a second month of large losses,” S3 Partners said in a research note.