According to BeSpoke investment firm research, the top 10% of the most heavily shorted stocks are up an average of 36.3% so far this year.
This includes troubled retailer Bed Bath & Beyond (BBBY) whose shares surged by more than 18% Thursday, a day after they missed a Feb. 1 interest payment and warned that it might file for bankruptcy within weeks.
Other stocks like online car dealer Carvana and any company which has anything remotely associated with artificial intelligence (AI) have seen similar spikes.
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