Investors look for heavily shorted stocks either to bet on a further decline in the company's value or to profit from a potential short squeeze.
Here’s a look at the top 10 most shorted stocks in the market right now.
The primary reason a stock becomes "heavily shorted" is that a large number of experienced traders and institutional investors — known as short sellers — believe the company is fundamentally overvalued and that its price will fall.
Learn more about short interest here: Is Your Stock a Squeeze Target? How To Decode Short Interest Data
Heavily shorted stocks often reflect a strong, well-researched conviction among professional traders or institutions that the company faces serious risks.
However, traders on the bullish side — often retail traders — view high short interest as a setup for potentially massive, fast gains through a short squeeze.
A short squeeze occurs when a stock's price rises unexpectedly, forcing short sellers (who are now losing money) to frantically buy shares back to cover their positions. The forced buying creates a sudden spike in demand, which pushes the price even higher, trapping more short sellers in a dangerous feedback loop.
The volatility of a short squeeze can lead to returns that far exceed typical stock movements in a very short time frame.
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Here are the most heavily shorted stocks (with market caps above $2 billion and free floats above 5 million) as of Dec. 29, according to data from Benzinga Pro.
In the table below, stocks are ranked by short interest — the total number of shares sold short and not yet covered, expressed as a percentage of shares available for public trading.
| Company Name & Ticker | Short Interest (%) [Dec. 29, 2025] |
| Lucid Group, Inc. (NASDAQ:LCID) | 54.51% |
| Choice Hotels International, Inc. (NYSE:CHH) | 50.20% |
| Avis Budget Group, Inc. (NASDAQ:CAR) | 48.80% |
| Revolve Group, Inc. (NYSE:RVLV) | 43.14% |
| Medical Properties Trust, Inc. (NYSE:MPW) | 37.13% |
| MARA Holdings, Inc. (NASDAQ:MARA) | 36.23% |
| Hims & Hers Health, Inc. (NYSE:HIMS) | 35.22% |
| TransMedics Group, Inc. (NASDAQ:TMDX) | 35.11% |
| Kohl’s Corporation (NYSE:KSS) | 34.27% |
| Northern Oil & Gas, Inc. (NYSE:NOG) | 33.27% |
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