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Cannabis Short Interest Soars Amid Accusations of Naked Shorting

  • Short positions hit $3.1 bln in September, up 52% since June
  • ‘Clearly there has been some monkey business,’ Davis-Rea says
Bloomberg business news
Wall Street Interest in Marijuana Is at All-Time High

Short interest in high-flying cannabis stocks surged 52 percent in the third quarter, and some investors say the wild price swings indicate there may be even more activity than the data reflect.

Total short interest in the marijuana space hit $3.1 billion on Sept. 27, up from just over $2 billion at the end of June, according to data from financial-analytics firm S3 Partners. That’s despite the fact that short sellers lost $731 million in September as cannabis stocks soared.