The Financial Post reports in its Saturday edition that short sellers in cannabis stocks are feeling the squeeze as Tilray Brands and Sundial Growers soared more than 19 per cent each, extending gains from Thursday as a U.S. House panel said it would vote next week for the second time to decriminalize marijuana. A Bloomberg dispatch to the Post says that pot stocks, which have languished this year, also got a boost this week from deals in the sector and Senate passage of a bipartisan bill that would expand scientific and medical research on marijuana and its compounds. The global cannabis market's growth hinges on legalization in the U.S. However, the glacial pace of federal legalization efforts has sowed doubts it will happen any time soon. Tilray jumped Friday, while Sundial Growers and U.S. shares of Canopy Growth and Aurora, while down slightly on Friday, surged on Thursday. Short sellers in these four stocks are down more than $260-million (U.S.) this week, according to S3 Partners data. With bearish bets in these stocks mounting over the past month, "This short selling will not only wane as mark-to-market losses mount but shorts will be squeezed into reducing their short exposure," said Ihor Dusaniwsky at S3.
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