Bed Bath & Beyond has had a tumultuous start to 2023, with the company’s stock up more than 230% in just four days, writes Business Insider.

According to S3 Partners, short sellers of the dwindling retailer made $179 million in profits in 2022, but they lost more than $30 million in 2023, and are now awaiting a potential bankruptcy filing for the company.

After jumping this week, the company’s stock has fallen to levels not seen since 1992 after its management warned that its deteriorating financial performance could lead to bankruptcy.

Short sellers on Bed Bath & Beyond have an incentive to hold their positions after it earned $179 million in profits in 2022, according to S3 Partners. If the threat of bankruptcy becomes more apparent, the prospect of Bed Bath & Beyond short-squeeze will become increasingly diminished, and minimal coverage of short positions can be expected as shorts wait for a $0.00 share price.

At the moment, traders are sticking to their bearish positions on Bed Bath & Beyond, and the stock is currently the second most shorted stock in the market.