Pot Stock Rally Burns Short Sellers for $105 Million

(Bloomberg) — A surge in shares of cannabis companies has saddled short sellers with more than $105 million in losses this year, but that hasn’t stopped traders from betting against the sector.

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In the last 30 days, short sellers have plowed $91 million into new positions betting that pot stocks will decline despite the paper losses, according to a report from S3 Partners LLC. The contrarian trades are taking place as cannabis companies are rising on hopes that…