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Investors are pumping more money into shorting pot stocks, despite the fact that doing so has resulted in estimated year-to-date losses of US$892 million, according to a U.S. firm that specializes in short-selling research.

Ihor Dusaniwsky, managing director for predictive analytics at S3 Partners, says his data show investors have spent US$1.4 billion shorting cannabis stocks in the United States and Canada since mid-year, but that they are struggling to find winning names.

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“There is no cannabis short that is making more than US$20 million but there are several that are losing over US$100 million,” Dusaniwsky said.

Investors are nevertheless continuing to test the sector, Dusaniwsky said, because they believe it is “flying too close to the sun” and is due for a reversal.