Investors searching for the next Beyond Meat, Inc. (NYSE:BYND) -- the latest poster child for explosive short squeezes -- are eyeing the most shorted stocks as potential candidates for outsized rallies. 

• BYND stock is moving. See the real-time price action here. 

Short selling, where traders bet against a company’s stock, can lead to dramatic price surges if too many shorts scramble to cover their positions -- a phenomenon seen with Beyond Meat, which saw short interest soar above 81% of its free float, according to Reuters.​

Read Next: Latest Beyond Meat Short-Seller? Martin Shkreli, Of Course

What Makes A Stock Heavily Shorted?

A stock is considered heavily shorted when a significant percentage of its available shares have been borrowed and sold by investors expecting a price drop. 

When news, momentum or coordinated buying sends prices higher, a short squeeze can force even more rapid buying. 

As short-sellers rush to cover their positions, eye-popping surges -- like the meme stock manias seen recently with Opendoor Technologies, Inc. (NASDAQ:OPEN) and 2021's GameStop Corp. ​​(NYSE:GME) rally -- can occur. 

Top 10 Most Shorted Stocks

Here are the most heavily shorted stocks (with market caps above $2 billion and floats above 5 million) as of Oct. 22, according to data from Finviz. 

Reminders:

• Highly shorted stocks are battlegrounds where negative fundamentals meet speculative trading.​
• Short squeezes can deliver huge, fast gains, but at very high risk and volatility.​
• Monitoring the short interest leaderboard can help identify which stocks might be the next short squeeze, but timing such trades remains extremely challenging.​
• Always conduct due diligence, as the volatility often reflects deep underlying risks and business uncertainty.

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