Short-seller activity surges as heavily shorted stocks rally 16 % this month

A Bloomberg report reveals that stocks with the highest short-interest ratios have outperformed this month, rising approximately 16 % compared with just 0.7 % for the S&P 500. The flip in performance suggests short-squeeze pressure has informed recent rallies, particularly in small and mid-cap names where leverage is higher. Analysts warn this dynamic may amplify volatility ahead of key earnings and macro events, noting that crowded trades could unwind quickly if sentiment shifts.