Benzinga·2025-11-26 16:34Core Insights - The article discusses heavily shorted stocks, highlighting the reasons traders engage in short selling and the potential for short squeezes [1][4][10] Group 1: Reasons for Heavy Shorting - Stocks become heavily shorted when experienced traders and institutional investors believe the company is fundamentally overvalued, anticipating a price decline [2][3] - Short sellers borrow shares, sell them at high prices, and aim to repurchase them at lower prices for profit [3] Group 2: Short Squeeze Dynamics - High short interest can attract bullish traders who see potential for rapid gains through short squeezes, where rising stock prices force short sellers to buy back shares, creating a feedback loop that drives prices higher [4][10] - The volatility associated with short squeezes can lead to returns that significantly exceed typical stock movements in a short time frame [5][10] Group 3: Most Shorted Stocks - As of November 26, the top 10 most shorted stocks include: - The Wendy's Co. (NASDAQ:WEN) - 55.36% - Cambium Networks Corp. (NASDAQ:CMBM) - 50.03% - Lucid Group, Inc. (NASDAQ:LCID) - 48.99% - Wolfspeed, Inc. (NYSE:WOLF) - 48.18% - Hertz Global Holdings, Inc. (NASDAQ:HTZ) - 44.67% - Sable Offshore Corp. (NYSE:SOC) - 38.59% - Replimune Group, Inc. (NASDAQ:REPL) - 38.39% - Hims & Hers Health, Inc. (NYSE:HIMS) - 38.12% - aTyr Pharma, Inc. (NASDAQ:ATYR) - 37.92% - Intellia Therapeutics, Inc. (NASDAQ:NTLA) - 37.85% [6][7]