Sandisk Rally: Short-Sellers Face $3 Billion Loss Amid "Extreme" Squeeze Risk

• Sandisk Corp. shares surged 1,117% in six months, causing over $3 billion in losses for short-sellers.
• Despite losses, short positions increased from 4% to 7.5% of the total float, pushing short squeeze risk to an "extreme" level (S3 Partners).
• The rally is fueled by the AI trade shifting to storage stocks, flash memory shortages, and price increases.
• Nvidia CEO Jensen Huang's comments at CES about storage being an "unserved market" also contributed to the stock's rise.
• Sandisk, known for high-performance storage, was spun off from Western Digital Corp. last year and has since gained 1,300%.

Why It Matters: Sandisk's massive stock rally has cost short-sellers billions, with an "extreme" short squeeze risk looming.