In this article, we will examine the 10 Most Shorted Stocks Right Now.
Short interest has become one of the most closely followed indicators in today’s market. It highlights where skepticism is concentrated, where investors are betting against prevailing optimism, and where price swings are often most pronounced. For investors, tracking the most shorted names is not simply about monitoring bearish positions but about identifying pressure points in market sentiment that can create both risks and opportunities.
Earnings remain the key driver for equities. In a CNBC interview on September 2, Stephanie Link, Chief Investment Strategist at Hightower Advisors, noted continued strength in the U.S. economy despite concerns over higher interest rates. She also noted low jobless claims, wage growth near 5%, and steady consumer spending supported by rising incomes and robust credit card data. Business investment also showed momentum, with core durable goods orders up 1.1% last month.
READ ALSO: 10 Best Stocks for a 20 Year Long-Term Stock Portfolio and 12 Overlooked Large-Cap Stocks with Low Multiples.
This type of resilience has helped keep markets calm, but it has also encouraged investors to take more aggressive investment bets. On August 22, Bloomberg reported that hedge funds are shorting the CBOE Volatility Index (VIX) at levels last seen in 2022, betting that calm will continue. Chris Murphy, co-head of derivatives strategy at Susquehanna, warned that such concentrated trades could unwind quickly if conditions shift. Similar setups have caught investors off guard before, including in February 2025, when equity markets reversed on renewed trade concerns.
For equity investors, heavily shorted stocks can also become focal points for sudden price swings when sentiment shifts. In both cases, extreme positioning increases the risk of crowded trades unwinding, underscoring the importance of monitoring the most shorted names for assessing both downside risk and potential upside from short-covering rallies.
With that backdrop, let’s now turn to the 10 most shorted stocks right now.
Our Methodology
To compile our list of the 10 most shorted stocks, we began by screening for U.S.-listed companies with a market capitalization above $2 billion and short interest representing more than 25%–30% of the free float. From this universe, we selected the ten stocks with the highest short interest as a percentage of float and ranked them in ascending order of that ratio. We have also added the number of hedge fund holders for each stock, based on the hedge fund sentiment data as of Q2 2025 from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Note: All pricing data is as of market close on August 29, 2025.
10 Most Shorted Stocks Right Now
10. Arbor Realty Trust Inc. (NYSE:ABR)
Short Interest as % of Float: 27.5%
Market Cap: $2.5 Billion
Number of Hedge Fund Holders: 14
Arbor Realty Trust Inc. (NYSE:ABR) is one of the most shorted stocks right now. Arbor continues to face elevated delinquencies and the pressure of higher interest rates, which have slowed loan originations and weighed on earnings. These challenges remain at the core of short-seller concerns. They are also evident in the cautious consensus ratings, where 50% of analysts have a Sell rating, and only one-quarter recommend a Buy.
Among the positive analysts is Citizens JMP’s Steven Delaney, who reaffirmed an Outperform rating on Arbor Realty Trust Inc. (NYSE:ABR) on August 19. However, he lowered his price target to $13, down from $13.50 previously. While the broader market remains cautious on the stock, Delaney argued that the company is making an effort to improve its credit quality and non-performing loan book. He also notes that, as evidence of the success of its recent measures, the company is witnessing progress in its other lines of business.
In line with these efforts, Arbor Realty Trust Inc. (NYSE:ABR) closed a $1.05 billion commercial real estate mortgage loan securitization on August 12. This move was aimed at enhancing liquidity by freeing up credit lines and allowing reinvestment in new loans.
This deal highlights Arbor’s ability to manage risks and short-term liquidity. However, it does not fully address longer-term concerns regarding leverage and credit quality, particularly in a weakening commercial real estate market. Thus, Arbor Realty Trust Inc. (NYSE:ABR) still has considerable ground to cover.
Arbor Realty Trust Inc. (NYSE:ABR) is a real estate investment trust (REIT) that specializes in structured finance for the multifamily and commercial real estate sectors.
9. PureCycle Technologies Inc. (NASDAQ:PCT)
Short Interest as % of Float: 29.1%
Market Cap: $2.6 Billion
Number of Hedge Fund Holders: 32
PureCycle Technologies Inc. (NASDAQ:PCT) is one of the most shorted stocks right now. On August 27, Jeff Grampp, an analyst at Northland, initiated coverage of PureCycle Technologies Inc. (NASDAQ:PCT) with an Outperform rating and a price target of $16.
Grampp has a bullish view, believing the company is well-positioned to be a leader in the polypropylene recycling industry. He based his argument on PureCycle Technologies Inc.’s (NASDAQ:PCT) recent $300 million fundraising round, which the company plans to use to expedite its expansion.
In its second-quarter update on August 7, PureCycle Technologies Inc. (NASDAQ:PCT) highlighted that it is well-set to achieve 1.0 billion pounds of installed capacity and $600 million in EBITDA per year by 2030. Its efforts to operationalize the Thailand facility are on track, and it expects the facility to be operational by the third quarter of 2027. For its Antwerp plant in Belgium, the company is planning to bring the capacity online by the third quarter of 2028.
Following the update, TD Cowen analyst James Schumm had also maintained his bullish view with a Buy rating and increased his price target on PureCycle Technologies Inc. (NASDAQ:PCT) to $16 from $13. The analyst cited the freshly announced billion-pound capacity plan as the reason for the increased estimates and target. He believed that a surge in larger orders would drive rapid revenue growth for the company, leading to substantial value creation for investors.
PureCycle Technologies Inc. (NASDAQ:PCT) is a recycling and sustainability company that develops processes to convert waste polypropylene into high-quality recycled resin.
