Baba is the prime example The profits that can be made on heavily shorted stocks are massive. That's part of what has made me successful as an investor. I look for the heaviest of the fallen stocks, check short interest, check fundamentals, check market sentiment, I check market sentiment by trolling the forums. Generally the most bashed stocks are the most shorted. StarTurd is a prime example of a short seller. If the stock has fallen more than 60% from the 52 week high I take a position. Jumping in 60% down allows me to average down if needed yet allows me to catch the upswing if it doesn't drop lower. It takes conviction to buy when you have already suffered a loss. It is also how you make MajorGains. I don't own a crystal ball but this is what works for me.