These are the stocks that short sellers are betting against even as the market rallies

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These stocks could fall and prove the hedge funds right, or rise and become potential short squeeze candidates.

Hedge funds and other short sellers are betting against plenty of stocks even as the market sets new record highs. Many short sellers have pulled back since the start of the meme stock craze, but the practice of betting against stocks is still around. Some of the biggest stocks on the list of most-shorted names are struggling this year, but with interest rates falling and stocks broadly climbing this week, those targeted stocks could be candidates for a so-called "short-squeeze.

mountain ImmunityBio has been a volatile stock over the past 12 months. Two names outside the top five that are outperforming the broader market this year are Comstock Resources and Madrigal Pharmaceuticals . That performance could make them more likely to have a short-squeeze in the near term, though the exact financial position of those short-sellers is not known. Notably, GameStop is not on the expanded list as a stock with at least 25% short interest.

 

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