Short Sellers Lost $195 Billion in 2023 Despite Wins on Regional Banks

Regional banks and vaccine makers were among the few bright spots for short sellers in 2023, as the stock market’s big rally last year delivered the group’s steepest cumulative loss since the depths of the pandemic.

First Republic Bank’s collapse made it the year’s most profitable short wager, yielding paper profits of $1.6 billion, according to data from S3 Partners LLC. Meanwhile, vaccine producer Moderna Inc., which slumped 45% in 2023, was second, earning $1.1 billion for short sellers, who bet on a stock’s decline.