The GameStop saga of January 2021 was a watershed moment that thrust short selling into the public spotlight. A coordinated effort by retail investors on Reddit sparked an unprecedented short squeeze in GameStop (GME), a stock that had over 100% of its float sold short by hedge funds. GameStop’s share price skyrocketed, toppling a major fund and prompting brokers to restrict trading – a controversial move that fueled accusations of market manipulation. This scandal highlighted how short selling (betting on a stock’s decline) can drastically affect stock prices and investor confidence. It also galvanized everyday investors to scrutinize heavily shorted stocks and demand fairer markets. Since then, short selling continues to make waves, with numerous companies experiencing intense short interest, coordinated short campaigns, or dramatic squeezes. Below we explore 10 case studies of companies targeted by short sellers since January 2021, examining their stock movements, short interest, fails-to-deliver data, alleged manipulation, and outcomes for investors.
1. AMC Entertainment (AMC)
AMC, a beloved movie-theater chain, became a meme stock alongside GameStop. Short sellers had bet heavily that pandemic closures would drive AMC into bankruptcy. Instead, retail investors piled in to “save” AMC, triggering massive short squeezes. The stock surged over 2,500% in the first half of 2021 – rising from under $5 in January to an all-time high of $72 by early June. As shorts scrambled to cover, AMC’s short interest dropped from 88 million to 74.5 million shares (about 14.9% of the float) within days.
The buying frenzy was so extreme that AMC was briefly the most traded stock by retail brokerage customers. Retail investors also pointed to disturbing fails-to-deliver (FTD) data: at one point in late 2021, AMC’s FTDs jumped by 2,700%, reaching nearly 80,000 shares failing to settle – hundreds of times more FTDs than much larger companies like Apple or Amazon. Such persistent FTDs fueled allegations of illegal naked short selling (shorting shares that don’t exist) that could be artificially suppressing AMC’s price.
In response, AMC’s CEO engaged with the retail base, even issuing dividend “APE” preferred shares to expose any phantom shares. While AMC’s stock eventually cooled (and sits far below its peak), the company avoided bankruptcy by raising new equity at high prices – ironically using the short squeeze momentum to strengthen its balance sheet. Many early investors profited, though latecomers who bought at the top suffered steep losses as the stock normalized. AMC’s saga underscored both the empowering victories and painful volatility that come when a shorted stock turns into a battleground.
2. Bed Bath & Beyond (BBBY)
Home-goods retailer Bed Bath & Beyond became another target of both short sellers and squeeze-hungry retail traders. The company’s declining sales and debt load made it a popular short in 2021–2022, with bearish funds betting on its collapse. By mid-2022, short interest had swollen to astonishing levels – over 45% of the free float was sold short by August 2022. (Some analyses even showed short interest effectively above 100% of float once factoring in certain data.) This extreme bearish positioning set the stage for wild swings.
In early 2021 BBBY’s stock jumped over 400% during the meme-stock frenzy, and again in August 2022 it rocketed from about $5 to $30+ in a matter of days – a 349% intra-month jump – as retail traders launched a short squeeze. Momentum was amplified by news that activist investor Ryan Cohen (of GameStop fame) had taken a stake, though the rally abruptly reversed when Cohen sold out. During the August 2022 spike, nearly half to all available shares were short, forcing frantic covering. Fails-to-deliver piled up amid the volatility, landing BBBY on the SEC’s threshold list and bolstering suspicions of naked shorting in Reddit communities.
Ultimately, the short sellers proved correct on fundamentals: Bed Bath & Beyond’s business continued deteriorating, and after multiple cash-raising attempts, the company filed for Chapter 11 bankruptcy in April 2023, commencing liquidation of its stores. Short sellers who held on profited as the stock plunged to zero, while equity shareholders were wiped out. BBBY’s tale is a cautionary one – even massive short squeezes can be short-lived if a company’s financial trajectory remains dire.
3. Clover Health (CLOV)
Clover Health, a Medicare insurance startup that went public via SPAC, was targeted by a prominent short seller just weeks after the GameStop saga. In February 2021, Hindenburg Research released a scathing report accusing Clover of hiding an active DOJ investigation and calling it a “broken business”. The report alleged Clover’s growth was overstated and regulatory issues undisclosed. Clover’s stock fell 12% in a day on the revelations, and the SEC opened an inquiry into the claims. Clover’s celebrity SPAC sponsor Chamath Palihapitiya publicly defended the company, but the damage was done – the stock, which had been ~$13, dropped into the single digits. In an ironic twist, a few months later Clover became a meme-stock itself: in June 2021 Reddit traders noticed its high short interest and piled in, briefly spiking 32% in one session as a short squeeze candidate. Clover’s shares jumped from ~$8 to over $20 during that retail-driven burst.
However, the rally was short-lived; the stock quickly sank back. In the long run, Hindenburg’s warnings proved prescient. Clover’s business struggles persisted (the DOJ probe was real), and the stock eroded to under $2 by 2022. This mixed outcome highlights the two sides of short selling: on one hand uncovering potential fraud or risk (protecting investors from overhyped stocks), but on the other hand creating opportunities for squeezes when shorts overstay their welcome. Clover investors who chased the squeeze high faced losses, while those who heeded the short report’s red flags avoided a collapsing stock. The Clover episode – coming right on the heels of GameStop’s drama – showed that activist short sellers hadn’t been deterred by the meme-stock movement. If anything, it emboldened them to shine light on more SPAC-era companies, even as retail traders kept a watchful eye for chances to squeeze the shorts.
4. Lordstown Motors (RIDE)
Electric vehicle startups were hot targets for short sellers in 2021, and Lordstown Motors became a prime example. In March 2021, Hindenburg Research (again) published a report accusing Lordstown – an EV truck SPAC – of fabricating its pre-order reservations and misleading investors about its production timeline. Hindenburg’s report asserted that many “orders” for Lordstown’s Endurance pickup were fake or non-binding, calling the order book a sham intended to raise capital. The impact was immediate: Lordstown’s stock plunged ~12% in one day and the company revealed it was facing an SEC inquiry into Hindenburg’s claims.
The CEO made things worse by admitting on CNBC that the pre-orders were indeed non-binding and “we never said we had orders” – effectively validating the short seller’s thesis. Lordstown’s share price, which had once traded above $30 amid EV hype, went into freefall, down into the single digits by mid-2021. Short interest remained elevated as skepticism grew about the firm’s ability to produce vehicles. Despite replacing top executives and bringing in new investments, Lordstown kept running out of cash. By June 2023 the company filed for Chapter 11 bankruptcy protection after a funding deal fell through – a dramatic collapse for what was once a market darling.
Short sellers who bet against Lordstown early were vindicated (the stock fell roughly 90% from its peak), though many ordinary investors were left holding the bag. Lordstown’s fate also had broader implications: it cast doubt on the wave of speculative EV SPACs, and it demonstrated how activist short reports can spur regulatory action (in this case, SEC and DOJ investigations) to uncover truth. In sum, Lordstown Motors became a case where short selling arguably saved some investors from a fraud, even as it accelerated the company’s downfall.
5. Carvana (CVNA)
Used-car retailer Carvana shows that short sellers don’t always win – sometimes they become fuel for an explosive comeback. In 2022, Carvana’s stock collapsed from over $300 a share to barely $4 amid soaring borrowing costs and bankruptcy fears. Short sellers swarmed, convinced the heavily indebted company would go under as the pandemic used-car boom faded. By early 2023, more than 55% of Carvana’s float was sold short, one of the highest short percentages in the market. This extreme bearish bet set the stage for a massive rebound. Carvana managed to restructure its debt and cut costs aggressively, surprising the market with improving finances.
When the company reported better-than-expected results in Q2 2023 and secured new financing, the stock price absolutely launched. From its all-time low, Carvana shares skyrocketed over 10-fold – the stock was up 422% year-to-date by mid-2023 (and eventually more than +1000% off the lows). This short squeeze rally handed short sellers over $1 billion in losses in the first half of 2023. Many who had bet on Carvana’s demise were forced to buy back shares at steep prices to cover their positions, driving the stock higher in a self-feeding cycle. Carvana’s resurgence has been called “one of the greatest comebacks in stock market history”.
Importantly, the company’s fundamentals did stabilize – it wasn’t purely a technical squeeze. Still, the speed and scale of the rally were amplified by the heavy short interest. This taught a lesson: when virtually everyone is short a “troubled” stock, even a glimmer of good news can spark a violent squeeze. Carvana’s journey from near bankruptcy to an energized recovery left short sellers burned and gave embattled shareholders newfound hope (and profits). It exemplifies the high-risk, high-reward nature of shorting: huge gains if a company fails, but unlimited losses if the company manages to survive and thrive.
6. Meta Materials (MMTLP)
One of the strangest short-related episodes in recent years involves Meta Materials’ preferred shares, known by the ticker MMTLP. This case has become a cause célèbre for retail investors alleging naked short selling and market manipulation. Meta Materials (MMAT) issued Series A Preferred shares in 2021 as part of a merger, which later began trading over the counter as MMTLP. These shares were due to be deleted in December 2022 and converted into a stake in a private spinoff (Next Bridge Hydrocarbons). In theory, any short sellers of MMTLP would have to close their positions before the corporate action, since the shares would cease to exist. As the cancellation date approached, retail investors noticed millions of shares of MMTLP sold short and huge fails-to-deliver, suggesting some had been engaging in naked shorting (shorting shares that weren’t borrowable).
In early December 2022, as buyers rushed in hoping for a short squeeze into the final trading days, something unprecedented occurred: FINRA suddenly halted trading in MMTLP on Dec. 9, 2022 – days before the planned delisting. FINRA cited an “extraordinary event” and potential issues with settlement as justification (a U3 halt). This halt froze thousands of retail investors, preventing them from selling their MMTLP shares, which were soon canceled. The community of shareholders erupted in outrage, speculating that FINRA’s action was done to protect short sellers who otherwise would have been forced to buy back shares at extreme prices to close out. Evidence from trading in the days prior showed suspicious activity – investors allege that shorts drove the price down from $9.90 to $2.90 in two days via a “short attack” with synthetic shares, then avoided closure due to the halt.
The result: investors are now stuck with untradeable private shares, and any short positions simply vanished without having to cover. This saga has spurred petitions, lawsuits, and even attention from regulators and Congress. Shareholders have held rallies and a press conference at the SEC demanding answers and the release of data on the alleged naked shorts. The MMTLP case is complex, but it underscores ongoing transparency issues in market plumbing – especially in the OTC and corporate action arena. To the investors involved, it’s a clear example of short-side manipulation undermining market integrity. FINRA maintains it halted trading to ensure fair settlement, but the lack of resolution months later has only fueled suspicions. In the end, MMTLP has become a rallying cry in the movement for fair markets, with its investors determined to not let an alleged short seller “heist” be swept under the rug.
7. Cosmos Health (COSM)
Even tiny companies are not immune to the chaos of short squeezes and suspected naked shorting. Cosmos Health, a small-cap healthcare firm, experienced a breathtaking 700% stock price surge in late 2022 that many attributed to a short squeeze. In November 2022 alone, COSM stock jumped over 600%, despite no major news from the company. The rally took shares from mere pennies to several dollars, catching most investors by surprise. What was driving it? Market observers noted that short interest was extremely high (over 24% of the float) and Cosmos had an unusually large number of fails-to-deliver, landing it on the SEC’s threshold securities list for weeks.
In mid-December 2022, Cosmos executed a 1-for-25 reverse stock split, which dramatically reduced the share count and appeared to trap short sellers who hadn’t closed positions. The day after the reverse split, COSM stock rocketed from around $0.30 (pre-split) equivalent to over $20 at one point. This extreme move – at one point Cosmos was up 618% in a single month – indicated a massive short-covering scramble. Some shorts simply couldn’t find shares to buy back post-split, which led to a cascading squeeze. The situation was so volatile that the stock was halted multiple times for volatility. Retail investors on forums celebrated the squeeze as payback against naked short sellers who they believe had flooded Cosmos with artificial shares (evidenced by those persistent FTDs). Indeed, Cosmos had far more FTDs than a company its size should, suggesting something was amiss. After peaking around $23 (split-adjusted), COSM eventually came back down to earth below $5 as reality caught up with fundamentals. However, for a moment, Cosmos Health became a battlefield where a short position implosion sent the stock into the stratosphere.
The case highlighted how regulatory mechanics like reverse splits or special dividends can be used to flush out shorts, and it reinforced retail traders’ conviction that some microcaps are victims of naked shorting. While Cosmos’s business hadn’t suddenly improved, the stock’s wild ride gave shareholders a chance to take profits and forced short sellers to think twice about the risks of over-shorting a thinly traded stock.
8. Genius Group (GNS)
In early 2023, Genius Group, a Singapore-based education technology firm, turned the tables on short sellers in a highly publicized way. The company’s CEO, Roger Hamilton, grew concerned that illegal naked short selling was driving down GNS shares. Rather than stay quiet, Genius Group went on the offensive – in January 2023 the board formed an “Illegal Trading Task Force” led by a former FBI director to investigate market manipulation in its stock. The task force’s mandate was to probe evidence that certain parties had sold a significant number of Genius shares without delivering them (essentially, phantom shares), which was depressing the share price. Genius publicly announced a series of countermeasures: hiring legal teams to pursue manipulators, planning a special dividend to expose any naked shorts, and even considering dual listing the stock to make shorting more difficult. This bold, proactive stance had an immediate effect – GNS stock skyrocketed.
In one trading day (Jan 19, 2023) GNS jumped over 120%, and within weeks it was up more than 200% year-to-date. Retail investors rallied around the company as a hero willing to fight back for shareholders. The stock ran from around $0.50 to over $5 at peak. The sudden surge, of course, put additional pressure on any short sellers in the name, forcing some to cover and validating the CEO’s concerns. Genius Group’s approach was almost investigative and activist in reverse – instead of a short seller publishing a dossier on a company, the company compiled a dossier on anonymous short sellers. By February 2023, Genius took legal action, filing a lawsuit against certain parties for allegedly spoofing and shorting its stock illegally.
While GNS’s price eventually settled back down (as fundamentals still dictate long-term value), the episode was a morale boost for the “anti-naked short” movement. It showed that small-cap companies can push back: by shining a light on trading irregularities, they can empower their shareholders and generate enough buzz to squeeze those betting against them. Genius Group’s crusade is ongoing – but already it stands as an example of a management team using every tool at their disposal (legal, technical, and PR) to counter suspected short seller manipulation. For beginners, it drove home the point that not all dramatic price spikes are random – sometimes they are a direct reaction to efforts to claw back a fair market.
9. Adani Group (India)
Short selling drama hasn’t been confined to U.S. markets. In early 2023, Adani Group, one of India’s largest conglomerates, was hit by an explosive short-seller campaign that rattled global investors. U.S.-based Hindenburg Research released a bombshell report on January 24, 2023, accusing Adani Group of brazen stock manipulation and accounting fraud across its companies. Hindenburg alleged that Adani’s listed companies – which had seen their stock prices rise over 800% in the prior few years – were inflated by offshore shell entities and leveraged to the hilt. The fallout was swift and severe: within days of the report, about $100 billion in market value was wiped out from Adani’s empire as investors dumped the stocks. The flagship Adani Enterprises stock plunged 50%+ in a week, and other Adani companies saw similarly steep declines. The Group was forced to cancel a $2.5 billion follow-on share offering to avoid deeper investor losses. Banks like Credit Suisse and Citigroup stopped accepting Adani securities as collateral, and margin loan covenants were triggered.
Adani Group vehemently denied Hindenburg’s allegations, issuing a 413-page rebuttal and even framing the attack as an assault on India itself. But the market appeared to side with the short seller’s concerns – the sheer magnitude of the sell-off indicated a loss of trust. Regulators in India and the U.S. began probing the claims, adding pressure on Adani to improve transparency. Adani’s founder (who had been the world’s 3rd-richest person) saw his net worth plummet by over $80 billion in a matter of weeks. Interestingly, because direct short selling in India is difficult for foreign firms, Hindenburg took positions against Adani via U.S. traded bonds and derivative instruments, demonstrating how short campaigns can span borders.
By mid-2023, Adani stocks had stabilized off their lows after the group prepaid some loans and a major investment firm injected capital, but they remained well below pre-report highs. The Adani episode underscores the power of activist short selling: one detailed report punctured years of stock gains and brought a giant to heel, at least temporarily. It also raised important questions about market integrity and oversight in emerging markets. For the public, this was a wake-up call that even globally significant companies can be targets of (and potentially brought down by) short seller allegations. The saga is a reminder of why scrutiny of corporate claims – and attention to short seller research – still matters greatly in today’s markets.
10. Support.com (SPRT)
Rounding out the list is Support.com, a once-obscure tech support software company that became a short squeeze legend in 2021. In August 2021, Support.com’s stock erupted out of nowhere, going from under $8 to as high as $59 in a span of weeks – a gain of over 600%. The catalyst? A perfect storm of very high short interest (50–60% of the float was short) combined with retail traders looking for the “next GameStop,” plus a bit of crypto hype thrown in. Support.com had agreed to merge with a Bitcoin mining firm (Greenidge Generation), and as that deal’s closing approached, traders realized a large short position might need to cover before the merger. The result was a monster rally fueled by a gamma squeeze and momentum buying, as noted by S3 Partners.
At one point on August 27, 2021, SPRT shares jumped 118% intraday and were up 448% over nine trading sessions. Short sellers were sent scrambling: in just a week, short interest fell by 238,000 shares as some shorts capitulated. However, even after some covering, more than 5.9 million shares – nearly 60% of the float – remained short at the height of the squeeze, meaning many shorts held on for dear life. Those who did were soon rewarded, because the euphoria was short-lived. After peaking around $59, the stock came crashing back down below $20 once the merger went through (the new entity was renamed Greenidge (GREE)).
Many retail speculators who bought late faced heavy losses, illustrating the “squeeze and burn” pattern of these meme plays. Still, for a brief moment, Support.com’s stock exemplified how retail armies can inflict major pain on short sellers. Traders tracking short interest saw an opportunity and pounced, turning a sleepy small-cap into a wildly volatile battleground. The company even issued a tongue-in-cheek press release amidst the frenzy, acknowledging the unusual trading activity. Support.com’s ride highlighted the risks on both sides: shorting a stock with a small float can be perilous if you get caught in a crowd-sourced squeeze, yet chasing a skyrocketing stock can be equally dangerous once the rally collapses.
Conclusion
From meme stock showdowns to short-seller exposés, these 10 examples demonstrate that short selling continues to significantly impact publicly traded companies. In some cases, short sellers have exposed overvaluations, fraud, or fundamental problems – arguably performing a market good (e.g. uncovering Lordstown’s fake orders or Adani’s hidden risks). In other cases, excessive short interest itself became a destabilizing force, inviting turbulent squeezes that hurt investor confidence (as seen with AMC, BBBY, COSM, and SPRT). The persistence of fails-to-deliver and allegations of naked shorting in several of these stories (AMC’s unexplained FTD spikes, MMTLP’s trading halt fiasco, Genius and Cosmos’s campaigns) is particularly troubling. Such issues suggest that basic market plumbing and enforcement around short sales require improvement to ensure a fair playing field.
The GameStop saga lit a fire under a new generation of investors to pay attention to short-selling activity. That public attention remains crucial today. Market integrity is at stake when large-scale short campaigns or potential manipulation go unchecked – confidence in the system erodes if investors suspect the game is rigged by undisclosed short positions or if brokers arbitrarily block trades. On the flip side, when rampant speculation and misinformation drive stocks to irrational highs, it is often short sellers who bring sanity back to prices. The key is achieving a balance where healthy skepticism from shorts is welcome, but malicious short attacks and rule-bending (like naked shorts) are policed. Regulators have begun reviewing some of these events, but transparency enhancements – like timely short interest reporting and FTD disclosures – would further help shine light on market corners that currently fester in darkness.
Ultimately, the continuing sagas of these companies show why public vigilance matters. Retail investors, empowered with data and social media coordination, have shown they can counter perceived short injustices (sometimes profiting handsomely in the process). Their collective voice also pressures regulators and companies to address potential abuse. Each case – whether it’s a beloved movie theater saved from shorts or a giant conglomerate brought to heel – contributes to the ongoing debate about short selling’s role and the importance of fair markets. As we move forward, the hope is that lessons from these episodes will lead to reforms that curb outright manipulation while preserving the benefits of short selling. After all, confidence in market integrity is fundamental for all participants – long or short, big or small. The post-GameStop era has made one thing clear: when irregularities arise, the crowd is watching, and market fairness remains a cause worth fighting for.