[Analysis: U.S. Stock Market Short Positions Reach Multi-Year Highs, Highest Level Since 2012] BlockBeats reports that on May 26, short positions in the U.S. stock market have reached multi-year highs. The median short position in S&P 500 stocks has risen to 3.0% of market capitalization, the highest level since 2012, and double the level seen during the 2020 pandemic. In comparison, during the 2008 financial crisis, the median short position in S&P 500 stocks was 3.8%. Additionally, among the 10% of stocks in the S&P 500 with the heaviest short positions, short positions have risen to 8.0% of market capitalization, the highest level since 2018. Both of these indicators are even higher than during the bear market following the bursting of the internet bubble in 2000. The market may be preparing for a potential short squeeze, where massive short covering could trigger a sharp, rapid, and violent upward surge in the short term. [Original Link]