<p>Traders targeting heavily shorted stocks are looking to play one of two sides: betting on a company's downfall or hunting for a short squeeze.</p>



<p>Here is a breakdown of why these stocks attract so much attention and a look at the current market landscape.</p>



<ul>
<li><em>LCID stock is heavily shorted. </em>See the chart and price action here. </li>
</ul>



<h2>What Makes A Stock Heavily Shorted?</h2>



<p>The primary reason a stock becomes heavily shorted is that a large number of experienced traders and institutional investors believe the company is fundamentally overvalued and that its price will fall. </p>



<p>The short sellers are betting that the company faces significant risks—such as poor earnings, a failing business model or industry headwinds—that will eventually drive the stock price down.</p>



<p>On the flip side, retail traders often view high short interest as a coiled spring. If the stock price starts to rise, it can trigger a short squeeze, accelerating the upward move.</p>



<h2>The Mechanics Of A Short Squeeze</h2>



<p>A short squeeze is a volatile feedback loop that can lead to explosive gains in a very short window. </p>



<p>It begins when a stock's price rises unexpectedly, forcing short sellers to frantically buy shares back to cover their positions. </p>



<p>The forced buying creates a sudden spike in demand, which pushes the price even higher, trapping more short sellers in the feedback loop. </p>



<p>The volatility of a short squeeze can lead to returns that far exceed typical stock movements in a very short time frame.</p>



<h2>Top 10 Most Shorted Stocks </h2>



<p>Here are the most heavily shorted stocks (with market caps above $2 billion and free floats above 5 million) as of Feb. 13, according to data from Benzinga Pro. </p>



<p>In the table below, stocks are ranked by short interest — the total number of shares sold short and not yet covered, expressed as a percentage of shares available for public trading.</p>



<figure class="wp-block-table"><table><tbody><tr><td><strong>Company Name &amp; Ticker </strong></td><td><strong>Short Interest (%) [Feb. 13, 2026]</strong></td></tr><tr><td><strong>Choice Hotels International, Inc. </strong>(NYSE:CHH)</td><td>57.32%</td></tr><tr><td><strong>Lucid Group, Inc.</strong> (NASDAQ:LCID)</td><td>51.78%</td></tr><tr><td><strong>Avis Budget Group, Inc.</strong> (NASDAQ:CAR) </td><td>48.72%</td></tr><tr><td><strong>CleanSpark, Inc. </strong>(NASDAQ:CLSK)</td><td>44.39%</td></tr><tr><td><strong>Hims &amp; Hers Health, Inc. </strong>(NYSE:HIMS)</td><td>41.71%</td></tr><tr><td><strong>ImmunityBio, Inc. </strong>(NASDAQ:IBRX)</td><td>40.85%</td></tr><tr><td><strong>MARA Holdings, Inc. </strong>(NASDAQ:MARA)</td><td>39.90%</td></tr><tr><td><strong>TransMedics Group, Inc. </strong>(NASDAQ:TMDX)</td><td>39.60%</td></tr><tr><td><strong>Kohl's Corp.</strong> (NYSE:KSS)</td><td>34.43%</td></tr><tr><td><strong>Sphere Entertainment Co. </strong>(NYSE:SPHR) </td><td>33.98%</td></tr></tbody></table></figure>



<figure class="wp-block-image size-large"></figure>



<h2>Reminders:</h2>



<ul>
<li>Highly shorted stocks are battlegrounds where negative fundamentals meet speculative trading.​</li>



<li>Short squeezes can deliver huge, fast gains, but at very high risk and volatility.​</li>



<li>Monitoring the short interest leaderboard can help identify which stocks might be the next short squeeze, but timing such trades remains extremely challenging.​</li>



<li>Always conduct due diligence, as the volatility often reflects deep underlying risks and business uncertainty.</li>
</ul>



<p><em>Photo: Shutterstock</em></p>

HIMY

HIMS

HIMZ

LCID

CLSK

CLSX

<p>The article discusses the top ten most shorted stocks, including Lucid, Hims & Hers, and CleanSpark. It explains that traders target these stocks either to bet on their decline or to capitalize on potential short squeezes. A stock becomes heavily shorted when traders believe it is overvalued, facing risks like poor earnings. A short squeeze occurs when rising prices force short sellers to buy back shares, creating a feedback loop that can lead to significant price spikes. The article lists the most shorted stocks as of February 13, 2026, highlighting their short interest percentages.</p>

Top 10 Most Shorted Stocks: CleanSpark, Hims & Hers And More