Highly shorted shares are beating the S&P 500 this year, and short sellers are down by $81 billion

The market’s comeback in 2023 has been very bad news for one group: short sellers.

Short sellers profit from stock declines by borrowing shares of companies that they believe are overvalued, selling them, and then buying them back at a lower price later. They made huge gains in 2022, when markets around the world tumbled.

Read more here.