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Last year, the markets were in a frenzy following several stocks going on eye-watering rallies amidst dramatic short squeezes in heavily shorted stocks. When a short position in stock builds, some investors may make a concerted effort to push up its price through heavy buying.

As the stock price rises, short sellers have to cover their positions and buy back the stocks they shorted. That leads to a cycle in which the stock price keeps rising regardless of the fundamentals of the stock. Here is a look at four stocks that are among the most shorted at this point in October 2022.

Bed Bath and Beyond (NASDAQ:BBBY)

This has been one of the more popular stocks for a short squeeze in recent times and even in the month of October, the specialty retail stock remains the most shorted stock. The short interest in the stock at this point in time stands at as much as 39%.

As it happens, investors from the Reddit forum Wall Street Bets had targeted the stock previously and it remains one of the favorites. Although it is currently trading at around $6 a share, the stock had previously soared to as much as $30 a share.

Beyond Meat (NASDAQ:BYND)

The good processing company which is best known for having come up with plant-based meats is another stock that may be of interest to those who are looking for heavily shorted stocks. At this point, the short interest in the stock stands at as much as 37%. Around a year ago, the stock had been in the middle of a rollicking rally and had hit $100 a share. It is now trading at $14.50 a share.

Big Lots (NYSE:BIG)

The discount store Big Lots has seen its stock have a wild ride in recent times. In November last year, the stock had been trading at $51 a share. However, since then it had declined by as much as 60% and is now trading at $16.60 a share. There is considerable short interest in the stock and currently, it stands at 37%.

Upstart Holdings (NASDAQ:UPST)

The consumer lending firm Upstart Holdings had seen its stock rise to a peak of $390 a share back in October last year. However, it has had a far more sobering time since then and has clocked a decline of more than 90%. The short interest is currently 37%.