CleanSpark(US:CLSK) Benzinga·2026-02-13 20:32Core Insights - Traders are focusing on heavily shorted stocks, either betting on a company's decline or seeking a short squeeze [1] 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 drop [2] - Short sellers are concerned about significant risks such as poor earnings, failing business models, or industry headwinds that could negatively impact stock prices [2] Group 2: Retail Trader Perspective - Retail traders often see high short interest as a potential for a short squeeze, where rising stock prices can lead to rapid upward movements [3] Group 3: Short Squeeze Mechanics - A short squeeze occurs when a stock's price unexpectedly rises, forcing short sellers to buy shares to cover their positions, creating a feedback loop that drives prices even higher [4] - The volatility associated with a short squeeze can result in returns that significantly exceed typical stock movements within a short timeframe [5] Group 4: Most Shorted Stocks - A list of the most heavily shorted stocks is provided, focusing on those with market caps above $2 billion and free floats above 5 million, ranked by short interest as a percentage of shares available for public trading [6]