Short sellers keep betting against Pop Mart — even though it's been a losing trade

A visitor holds a Labubu doll at Pop Mart International Ltd.'s "Monsters by Monsters: Now and Then" ten year anniversary exhibition in Shanghai, China, on Wednesday, Oct. 15, 2025. Qilai Shen | Bloomberg | Getty Images Short sellers are doubling down on Pop Mart International even as a recent share price recovery makes their bearish bets on the Chinese toymaker look increasingly risky. Short interest in Pop Mart climbed to 12.67% of shares outstanding as of Tuesday, up from 11.3% in April, according to S&P Global Market Intelligence data. Pop Mart shares have more than halved from their peak in August last year to 153 Hong Kong dollars ($19.5), as of Tuesday. But the stock has recently recouped some ground, gaining 8% since its year-to-date low in April — leaving the Chinese toymaker as the only one of the 10 most-shorted stocks listed in Hong Kong where short sellers are currently losing ground, according to the market intelligence firm. "Pop Mart stands out as the only stock on the list where shorts are losing money," said Matt Chessum, executive director of equity and analytical products at S&P Global Market Intelligence, highlighting "resilient" consumer demand and the growing risk of a technical short squeeze as the stock rebounds off its April lows. The persistent bearish bets reflect deepening tension between a sizable cohort of skeptical traders and the bulls. …