Investors look for heavily shorted stocks either to bet on a further decline in the company's value or to profit from a potential short squeeze.



Here’s a look at the top 10 most shorted stocks in the market right now. 



<ul>
<li>LCID stock is heavily shorted. See the details here.</li>
</ul>



<h2>What Makes A Stock Heavily Shorted?</h2>



The primary reason a stock becomes &#34;heavily shorted&#34; is that a large number of experienced traders and institutional investors — known as short sellers — believe the company is fundamentally overvalued and that its price will fall.



Learn more about short interest here: Is Your Stock a Squeeze Target? How To Decode Short Interest Data



Heavily shorted stocks often reflect a strong, well-researched conviction among professional traders or institutions that the company faces serious risks. 



However, traders on the bullish side — often retail traders — view high short interest as a setup for potentially massive, fast gains through a short squeeze.



A short squeeze occurs when a stock's price rises unexpectedly, forcing short sellers (who are now losing money) to frantically buy shares back to cover their positions. The forced buying creates a sudden spike in demand, which pushes the price even higher, trapping more short sellers in a dangerous feedback loop. 



The volatility of a short squeeze can lead to returns that far exceed typical stock movements in a very short time frame.



Read Next: Elon Musk Predicts A New Economy: No Poverty, No Hunger And Work Is Optional



<h2>Top 10 Most Shorted Stocks</h2>



Here are the most heavily shorted stocks (with market caps above $2 billion and free floats above 5 million) as of Dec. 29, according to data from Benzinga Pro. 



In the table below, stocks are ranked by short interest — the total number of shares sold short and not yet covered, expressed as a percentage of shares available for public trading.



<figure class="wp-block-table"><table><tbody><tr><td>Company Name &amp; Ticker </td><td>Short Interest (%) [Dec. 29, 2025]</td></tr><tr><td>Lucid Group, Inc. (NASDAQ:LCID) </td><td>54.51%</td></tr><tr><td>Choice Hotels International, Inc. (NYSE:CHH)</td><td>50.20%</td></tr><tr><td>Avis Budget Group, Inc. (NASDAQ:CAR) </td><td>48.80%</td></tr><tr><td>Revolve Group, Inc. (NYSE:RVLV)</td><td>43.14%</td></tr><tr><td>Medical Properties Trust, Inc. (NYSE:MPW) </td><td>37.13%</td></tr><tr><td>MARA Holdings, Inc. (NASDAQ:MARA) </td><td>36.23%</td></tr><tr><td>Hims &amp; Hers Health, Inc. (NYSE:HIMS) </td><td>35.22%</td></tr><tr><td>TransMedics Group, Inc. (NASDAQ:TMDX) </td><td>35.11%</td></tr><tr><td>Kohl’s Corporation (NYSE:KSS) </td><td>34.27%</td></tr><tr><td>Northern Oil &amp; Gas, Inc. (NYSE:NOG) </td><td>33.27%</td></tr></tbody></table></figure>



<figure class="wp-block-image size-large"></figure>



<h2>Reminders:</h2>



<ul>
<li>Highly shorted stocks are battlegrounds where negative fundamentals meet speculative trading.​</li>



<li>Short squeezes can deliver huge, fast gains, but at very high risk and volatility.​</li>



<li>Monitoring the short interest leaderboard can help identify which stocks might be the next short squeeze, but timing such trades remains extremely challenging.​</li>



<li>Always conduct due diligence, as the volatility often reflects deep underlying risks and business uncertainty.</li>
</ul>



Read Next: 



<ul>
<li>Lucid Takes On Tesla: $50K Crossover Is Coming For The Model Y </li>
</ul>



Photo: Shutterstock

LCID

HIMS

MARA

Lucid, MARA, Hims & Hers, Kohl's, TransMedics, and Avis are among the top ten most shorted stocks currently. Investors often target heavily shorted stocks to either bet on further declines or profit from potential short squeezes. High short interest indicates that traders believe a stock is overvalued, while retail traders may see it as an opportunity for quick gains. The top ten most shorted stocks include Lucid Group (54.51%), Choice Hotels (50.20%), and Avis Budget (48.80%). Monitoring short interest can help identify potential short squeeze opportunities, but carries high risks.

Top 10 Most Shorted Stocks: Lucid, MARA, Hims and More