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Some prescient short sellers reduced their positions in Aphria Inc. last month, while short interest in CannTrust Holdings Inc. rose after the company disclosed a serious regulatory breach.

Aphria, which surged 40 per cent Friday after reporting quarterly earnings that beat expectations on virtually all metrics, saw a US$23.6-million decrease in the value of shares shorted, the largest drop in July among 150 cannabis stocks tracked by financial analytics firm S3 Partners.

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Troubled CannTrust, meanwhile, saw a nearly US$400,000 rise in short interest last month. The Canadian producer revealed Thursday it’s under investigation by a joint task force including securities regulators and police after it grew pot in unlicensed areas of its greenhouse in Pelham, Ontario. The stock has lost more than half its value since the breach was first revealed on July 8.