Warning: Short sellers are actively lifting their bets against these 10 stocks

If short sellers are actively lifting their bets against a stock that you own it makes sense to pay attention. 

Hedge funds and professional investors will not heavily bet on a stock falling for nothing, but that doesn't mean they might be wrong, if a business beats the market's expectations for example. 

The latest ASIC and FactSet data reveals the following ten S&P/ASX 200 stocks had the largest net increases in short bets against them in percentage terms over the week to February 13.  

So let's look at the businesses that hedge funds are most actively betting against in ascending order. 

Bears v bulls

1. Audinate Group (ASX: AD8) short interest increased from 7% to 8.3%. Shares in the audio software business surged 26.5% on massive volume on February 17 the day it posted better-than-feared results for the six months to December 31. The violent move is attributable to short sellers being forced to close their positions in a hurry as bets turned sour in a phenomenon known as a 'short squeeze'. 
2. Collins Foods (ASX: CKF) short interest increased from 2.3% to 3.5%. The KFC merchant won't report full-year results until May, although short sellers may be honing in on a February 6 trading update for KFC Australia from related entity, Yum! Brands. 
3. Boss Energy (ASX: BOE) short interest increased from 19% to 20.1%. The South Australian uranium miner has a massive 20.1% of its shares sold short as uranium prices tumbled to their lowest level since September 2023 this week. The nuclear fuel's price falls have pushed Boss shares 43% lower over the last 12 months and short sellers are confident of trouble ahead. 
4. Whitehaven Coal (ASX: WHC) short interest increased from 3.2% to 4.3%. Benchmark Newcastle coal prices fell to $US100.85 a tonne on Wednesday at their lowest level in four years. The ongoing downturn is encouraging short sellers to bet that Whitehaven shares will keep falling after losing 17% in 2025 already.
5. Westgold Resources (ASX: WGR) short interest increased from 3.5% to 4.5%. The gold miner is looking to divest non-core assets including its Lakewood processing facility not long after it acquired Canada's Karoa Resources for $1.2 billion in August 2024. The combined group is more complex and short sellers are likely sceptical about the new capital structure. 
6. APA Group (ASX: APA) short interest increased from 3.7% to 4.6%.  The gas transit business is due to report on February 25 and short sellers expect the result to disappoint. In a recent note, Morgan Stanley said some of the risks to the downside for APA include project delays, recontracting deals, and possible delays in passing on higher capital costs should there be a sudden liquidity change. 
7. Paladin Energy (ASX: PDN) short interest increased from 15.9% to 16.8%. The miner's another victim of the ongoing fall in spot uranium prices to around $US66 a tonne this week at their lowest level since September 2023. The stock has slumped 37.3% over the last 12 months and there could be falls ahead given the whopping short interest. 
8. Block Inc (ASX: XYZ) short interest increased from 1.5% to 2.3%. The Jack Dorsey-led payments, neo-banking and crypto business has attracted controversy over the years due to its complex accounts and unproven allegations it inflates user numbers at Square and Cash App. 
9. Orica (ASX: ORI) short interest increased from 2.3% to 2.9%. This business is leveraged to a demand for mining services as the resources sector coughs up a slew of disappointing updates on softer commodity prices over earnings season. 
10. Mineral Resources (ASX: MIN) short interest increased from 12.2% to 12.8%. This is a huge winner for short sellers after it posted a wider-than-expected loss on February 19 to push the stock nearly 21% lower. The miner's biggest problem is net debt on the balance sheet that stood at $5.1 billion as at December 31, versus a current market cap of $4.8 billion. Short sellers might think it needs to raise capital, although founder Chris Ellison insists the leverage is manageable as it rides out a downturn in lithium prices.