Short sellers betting against AI data center stocks just made $6 billion in OctoberThat is paper profit in just 22 days,…

Short sellers betting against AI data center stocks just made $6 billion in October

That is paper profit in just 22 days, per ORTEX data reported by Reuters this morning

Bets against $Nebius(NBIS.US) made the most at $2.94 billion, even though Nebius shorts are still down $3.33 billion on the year

$Coreweave(CRWV.US) shorts made nearly $1.7 billion as the stock slid almost 30% this month

$IREN(IREN.US) and $Applied Digital(APLD.US) shorts made more than $1.2 billion combined, and $Core Scientific, Inc.(CORZ.US) shorts added $115 million

Short interest across all five now sits between 20% and 26% of free float, with about $17 billion of stock sold short, and borrowing is still cheap

The fear is simple. These companies borrowed heavily to build AI capacity, and with rate hike bets rising the math on that debt gets harder every week

But 20% to 26% of the float sold short is a crowded trade. If one of these names posts a strong contract or a clean refinancing, the squeeze could be just as violent as the drop

Source: StockMarket.News