Key Points
Short sellers are down nearly $74 million in paper losses, according to data from S3 Partners LLC..
The growing value of positions against Beyond Meat also puts traders at risk of a short squeeze, a phenomenon where short sellers are forced to buy back the stock to unload their losing positions..
Shares available to short make up about 38% of total shares outstanding, there are almost no shares left to borrow to short and the stock boasts a 310% borrow fee, per S3..
There are going to be shorts getting squeezed out of this trade due to both high stock borrow costs and large recent mark-to-market losses," said Ihor Dusaniwsky, managing director of predictive analytics at S3..
Beyond Meat shares are on track to reach their highest level since December, putting the stock in positive territory year to date after three consecutive years of losses..
