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Analysis: US Stock Market Short Interest Reaches Multi-Year High, Reaching the Highest Level Since 2012

BlockBeats News, May 26, the short interest in the U.S. stock market has now reached a multi-year high. The short interest of median S&P 500 stocks has risen to 3.0% of market capitalization, the highest level since 2012, double the level seen during the 2020 pandemic. In comparison, during the 2008 financial crisis, the short interest of median S&P 500 stocks was 3.8%.


Furthermore, among the top 10% most shorted stocks in the S&P 500, the short interest has risen to 8.0% of market capitalization, the highest level since 2018. Both of these indicators are even higher than during the bear market period following the burst of the 2000 Internet bubble. The market may be preparing for a potential short squeeze, where a large number of short positions are forced to cover, leading to a rapid and violent upward movement in the short term.

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