Short Sellers Bleed $250 Billion as Nvidia, Tesla Fuel Market Surge

Short sellers have been hit hard by the recent market rally — losing more than $250 billion since the April 8 bottom, according to data from S3 Partners. The surge, which has brought the S&P 500 back within 3% of its all-time high, has turned into a nightmare for bearish investors.

Leading the pain: Nvidia (NVDA) and Tesla (TSLA), with short positions on the two companies racking up more than $19 billion in combined losses.

Nvidia has been buoyed by easing trade restrictions and bullish sentiment ahead of its May 28 earnings report.
Tesla soared as Elon Musk refocused on the automaker following his time at the Department of Government Efficiency (DOGE).

But the pain hasn’t been limited to tech giants. Retail favorites like Palantir (PLTR), Hims & Hers (HIMS), and MicroStrategy (MSTR) also staged sharp rallies:

Palantir is up over 55% since April 8.
Hims & Hers has more than doubled.
MicroStrategy — riding bitcoin’s momentum — jumped 68%, with short sellers losing over $5 billion.

Short Sellers Bleed 0 Billion as Nvidia, Tesla Fuel Market Surge — Short Sellers Bleed $250 Billion as Nvidia Tesla Fuel Market Surge

These gains have crushed bearish bets and triggered widespread short covering, adding more fuel to the rally.

The surge began after President Trump delayed key tariffs in early April, triggering the S&P 500’s best single-day gain since 2008. Continued pullbacks on tariffs have kept the rally alive, while a lack of negative catalysts gave markets breathing room.

Still, some analysts are skeptical of the rally’s strength.

“I don’t actually think it is so much a validation of strong fundamentals,” said Viktor Hjort, head of strategy at BNP Paribas. “It’s a reflection of the fact that the market was caught short at a time when there was no actual fundamental information available.”

With June approaching and fresh economic data on the way, Hjort warned the market may become more vulnerable.