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Short-Squeezed Hedge Funds Are Now Getting Hit on Their Bullish Bets Too

  • Their favorite shares have the longest decline since October
  • The retreat coincides with a surge in most-shorted companies
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Hedge Fund Shorts Get Crushed
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With a full-blown retail raid targeting their short books, many of the stocks hedge funds are bullish on are suddenly in trouble, too. That has prompted the industry to cut their risk appetite at the fastest pace in more than a year.

Square Inc., Roku Inc. and Peloton Interactive Inc., among the industry’s favorite stocks, each tumbled at least 3% Tuesday while GameStop Corp. continued to lead a rally among companies with the highest short interest. Shares of the video game retailer spiked more than 65% in late trading after Elon Musk tweeted about it.