From Yahoo Finance: 2025-05-22 09:33:00

The market has rapidly bounced back to near record highs, causing short sellers to lose over $250 billion since April 8. Nvidia and Tesla were among the top 20 stocks where short investors lost the most money, with combined losses of over $19 billion. Both companies have seen individual catalysts driving their stock prices higher. Nvidia has benefited from easing trade restrictions, while Tesla’s stock has rocketed higher with Elon Musk’s focus back on the company after a stint with DOGE. Palantir, Hims & Hers, and Strategy have also seen short sellers lose over $2 billion, $5 billion, and $2 billion respectively. Palantir shares have risen over 55%, Strategy shares have soared over 68%, and Hims and Hers stock has more than doubled, far outpacing the S&P 500’s 17% gain. The broad market rally began on April 9 when President Trump announced a 90-day delay on reciprocal tariffs, leading to the S&P 500’s best day since 2008. The rally continued as Trump pulled back on other duties, with some believing short-covering contributed to the rally. BNP Paribas’ head of debt & equity strategy Viktor Hjort believes the market was caught short with no actual fundamental information available. The next catalyst for stocks lies in economic data and whether it reflects resiliency despite tariffs that have gone into effect.

Read more: Nvidia, Tesla lead over $250 billion in short seller losses during massive market rally