The craze for "meme stocks" caused short sellers to lose $2.5 billion

According to a report by Golden Finance, for traders who are bearish on high-risk stocks in the United States, July can be described as a "tragic" month. According to S3 Partners, as of last Thursday, investors had lost $2.5 billion on the top 50 publicly traded stocks with the highest short positions in the United States in July. These companies include "meme stocks" such as Kohl's Corp. The average loss from short selling these targets is four times the overall average short selling loss of the US stock market. With the increasing enthusiasm of retail investors for investing in machine stocks, multiple highly short selling individual stocks have been strongly boosted, putting pressure on bears. Although key events such as the tariff deadline, Federal Reserve decision, and non farm payroll this week pose significant tests to risk appetite sentiment, strategists generally believe that there is still room for this wave of "meme stock" frenzy to continue. According to data from Vanda Research, retail investors' net purchases of "meme stocks" such as Opendoor and Krispy Kreme continue to rise, and trading activity is also accelerating.