Short squeezes have been among the most popular and controversial topics on Wall Street in the past couple of years. In 2021, groups of online stock traders on Reddit made headlines by orchestrating targeted buying campaigns to trigger short squeezes in some of the market’s most heavily shorted stocks.
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A short squeeze is a large, short-term spike in a stock’s share price that occurs when a significant number of short sellers are forced to buy shares and exit their positions all at once. Here are nine stocks primed for the next big short squeezes, according to Ortex Analytics:
| Stock | Short interest (as of June 27) | Cost to borrow |
| Amyris Inc. (ticker: AMRS) | 23.5% | 57.5% |
| Cricut Inc. (CRCT) | 17.1% | 43.9% |
| Hyzon Motors Inc. (HYZN) | 24.1% | 63.4% |
| Prime Medicine Inc. (PRME) | 22.7% | 37.4% |
| Sirius XM Holdings Inc. (SIRI) | 32.1% | 32.1% |
| P3 Health Partners Inc. (PIII) | 16.8% | 97.4% |
| Microvision Inc. (MVIS) | 27% | 59.7% |
| Beyond Meat Inc. (BYND) | 43.1% | 180.2% |
| Cipher Mining Inc. (CIFR) | 24.3% | 49.8% |
Amyris Inc. (AMRS)
Amyris produces sustainable ingredients used in consumer product production. The company has generated impressive growth numbers, but short sellers have taken note of its expanding losses. In May, Amyris shares dropped to a new all-time low of 55 cents, placing the stock at risk of being delisted from the Nasdaq. In June, the company’s CEO resigned and Amyris announced a “reduction in force” as part of its goal of cutting costs by $250 million. A surprise profit at some point could trigger a massive short squeeze. Amyris’ short interest has grown to 23% of its float, or free-trading shares.
Cricut Inc. (CRCT)
Cricut makes smart machines used for crafting and do-it-yourself projects. The company priced its May 2021 IPO at $20 per share, and the stock has since lost nearly 40% of its value. In May, Cricut announced impressive 19% total user growth and 17% paid subscriber growth in the first quarter. However, short sellers likely focused more on the company’s 26% drop in revenue. Still, Cricut has now reported six consecutive profitable years. The stock has nearly doubled since the company declared a special dividend in late May, demonstrating its squeeze potential. Ortex estimates about 17% of the company’s float is currently held in short positions.
Hyzon Motors Inc. (HYZN)
Hyzon Motors is a hydrogen mobility company focused on designing, developing and producing standalone and integrated hydrogen fuel cells and systems, as well as hydrogen-powered commercial vehicles. Hyzon went public via a special purpose acquisition company (SPAC) merger in July 2021 at a price of $9.70, but it has since dropped more than 90%. In June, Hyzon said it has strengthened its governance and identified “material weaknesses in controls and procedures.” The company previously delayed its first-quarter earnings report and disclosed a delisting warning from the Nasdaq. Meanwhile, the stock’s short interest is up to 24% of its float.
Prime Medicine Inc. (PRME)
Prime Medicine is one of the few companies that went public in a difficult market in 2022. Prime Medicine is developing its gene editing technology, Prime Editing, to treat a wide range of genetic diseases. So far in 2023, Prime has nominated PM359 as its first development candidate for treating chronic granulomatous disease, or CGD. It has also reported data demonstrating the potential of its Passige technology to produce CAR-T cells, suggesting Prime Editing could potentially be used to treat a number of cancers and immune diseases. Short sellers are seemingly skeptical about the company’s technology. Prime Medicine’s short interest is nearly 23% of its float.
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Sirius XM Holdings Inc. (SIRI)
Sirius XM Holdings is a leading provider of satellite and internet radio services, largely to the auto industry. In April, Sirius XM reported first-quarter earnings and revenue numbers that fell short of consensus analyst expectations. The company also guided for just $1.1 billion in 2023 free cash flow, a potential year-over-year decline of about 22%. Sirius XM is on track for its third consecutive year of declining cash flows, and short sellers are taking notice. However, a recovery in the global auto market could be enough to trigger a major short squeeze. Sirius XM’s short interest is over 32% of its float.
P3 Health Partners Inc. (PIII)
P3 Health Partners is a population health care management company that focuses on connecting Medicare Advantage and commercial patients with primary care and chronic care management providers, and the company has a network of 2,800 U.S. primary care affiliates. P3 reported 11% listed capitation revenue growth in the first quarter. However, short sellers are likely more focused on its $52.4 million net loss in the quarter. P3’s short squeeze potential may ultimately hinge on its ability to eventually prove its business model can be profitable. Ortex estimates nearly 17% of P3’s float is held in short positions.
Microvision Inc. (MVIS)
Microvision is developing a lidar sensor for autonomous vehicles and has been a favorite of the Reddit WallStreetBets forum since early 2021. After trading as high as $28 during the peak of the Reddit trading craze in April 2021, Microvision shares have dropped back down to under $5. Microvision recently demonstrated its short squeeze potential, soaring from under $2 to as high as $8.20 in less than six weeks. Short sellers see the company reported less than $1 million in revenue and a $19 million net loss in the first quarter. The stock’s short interest is up to 27% of its float.
Beyond Meat Inc. (BYND)
Plant-based meat company Beyond Meat has had a disastrous couple of years, and 2023 is no exception. In October 2022, Beyond Meat announced it’s cutting 19% of its workforce, and first-quarter revenue was also down 15.7%. The stock is down 91% overall in the past two years, and short sellers smell blood in the water. Beyond Meat investors were once betting on a growth stock with a massive addressable market, but short sellers see an unprofitable company with negative growth in an increasingly competitive market. Beyond Meat’s short interest is over 43% of its float, the highest on this list.
Cipher Mining Inc. (CIFR)
Cipher Mining operates a U.S. Bitcoin (BTC) mining business. Bitcoin prices are up 81% so far in 2023, so it’s easy to understand why Cipher shares are skyrocketing. However, short sellers likely see the stock’s incredible 415% year-to-date gain as overkill and are betting on a significant pullback. Cipher reported a $6.6 million net loss in the first quarter, and the stock trades at a steep valuation of 28.8 times sales. However, another significant rise in Bitcoin prices could send short sellers running for the hills. Cipher’s short interest is 24% of its float.
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Update 07/03/23: This story was published at an earlier date and has been updated with new information.
