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Why Virgin Galactic, Palantir, Kodak, Genius Brands, and Other Heavily Shorted Stocks Soared Today

Why Virgin Galactic, Palantir, Kodak, Genius Brands, and Other Heavily Shorted Stocks Soared Today

Shares of many highly shorted stocks rose sharply on Wednesday, as traders bid up their prices in hopes of igniting short squeezes. A short squeeze can occur when short-sellers suffer sizable losses on a fast-rising stock. To short a stock, a short-seller borrows its shares from another investor and sells them, with the goal of buying them back at a lower price and harvesting a profit.