Rally in Top Space Stocks Sets Short Sellers Up for Squeeze

Two top performing space stocks have been on blistering rallies that risk soon burning short sellers betting against the highfliers, according to data provider S3 Partners.

Shares of Intuitive Machines, Inc. and Rocket Lab Corp. have surged 123% and 131%, respectively, since March 30. The rapid gains have set both of them up for short squeezes, a phenomenon where sellers may be forced to buy the stock back to cover their losing positions. The covering will drive share price even higher, putting more pressure on the cohort.