Short sellers gain 6 billion as neocloud shares slide

Short sellers have generated six billion dollars in paper profits this month amid a market selloff in US neocloud and data center companies. Investors targeted firms like CoreWeave and Nebius over concerns regarding debt-fueled artificial intelligence investments.

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FILE PHOTO: CoreWeave logo is seen in this illustration taken July 20, 2026. REUTERS/Dado Ruvic/Illustration/File Photo

Short sellers targeting United States neocloud and data center operators have secured $6 billion in unrealized profits in October. The selloff follows mounting investor concern that debt-financed artificial intelligence infrastructure buildouts are becoming unsustainable. Short interest across five major operators ranges from 20% to 26% of their free float, per data analytics firm ORTEX.

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