151872513 OP 安安稳稳过日子 : Yeah hahah, they managed to short NIO more than Lucid. Gold

151872513 OP 102704853 : Shorting means expecting a stock to fall. In order to achieve this they will need to borrow stocks and sell them now for the current price and buyback and return the stocks later when the stock falls lower. Hence the profit.

151872513 OP : However, shorting comes with significant risks. Normally when you buy stocks you can't lose more than what you invested. However, the opposit is true for short selling, the upside is capped at what you invested and the downside can be much more.
The short squeeze that you often hear about related to shorting is when the stock price rises instead of falling, the short sellers are forced to buy back and return the stocks due to a margin call. Hence further drive up the stock prices. When you have multiple hedge funds rushing to buy back the stock and accepting their losses driving up each others prices is another type of short squeeze.