S3 Partners ran an intriguing screen to find the most crowded shorts in the market.
In looking at the stocks under attack, the firm said a short can be considered to be "crowded" if there are large amount of dollars at risk on the short side, a large proportion of a stock's float is being shorted, there is illiquidity in the stock loan market and/or there is illiquidity in the trading market for the stock.
Based on those factors, S3 tabulated the top 10 most crowded short trades as of May 13 as Sirius XM Holdings (SIRI), Beyond Meat (NASDAQ:BYND), Camping World Holdings (CWH), Lemonade (LMND), Lucid Group (LCID), HashiCorp (HCP), Arch Resources (ARCH), Warby Parker (WRBY), Cassava Sciences (SAVA), and MicroVision (MVIS).
S3's Ihor Dusaniwsky and Matthew Unterman took it a step further by overlaying the firm's Squeeze algorithm over the Crowded Score to churn out the stocks most at risk of a short squeeze. That list included Vertex Energy (VTNR), Sirius XM Holdings (SIRI), Camping World (CWH), Intercept Pharma (ICPT) and Biohaven Pharmaceutical Holding (BHVN).
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