The "meme stock" craze has caused shorting investors to lose $2.5 billion.

Jin10 data reported on July 28 that for traders shorting high-risk stocks in the U.S., July can be described as "tragic." According to data from S3 Partners, as of last Thursday, investors have lost $2.5 billion on the 50 U.S. stocks with the highest short positions in July. These companies include meme stock representative Kohl’s Corp., among others, with an average loss on shorting these targets being 4 times the overall average short loss in U.S. stocks. As retail investors' enthusiasm for speculative stocks surges, several heavily shorted stocks have been strongly pumped, putting pressure on short positions. Despite key events such as tariff deadlines, Fed decisions, and non-farm payrolls posing significant tests to risk appetite this week, strategists generally believe that this round of meme stock frenzy still has room to continue. Data from Vanda Research shows that retail investors' net buying of meme stocks like Opendoor and Krispy Kreme continues to rise, with trading activity also accelerating.