Potential short squeeze plays gained steam in 2021 and have continued to attract attention, with new traders looking for the next huge move.

High short interest and a high cost to borrow are among the common traits that could lead to a short squeeze.

Here's a look at the top five short squeeze candidates this week based on the Fintel short squeeze leaderboard.

Ambrx Biopharma: Clinical stage biopharmaceutical company Ambrx Biopharma (NYSE:AMAM) tops the list for the week, moving up three places. Data shows 39% of the float short and a cost to borrow of 98.7%, both among the highest on the leaderboard. The stock was the seventh most searched-for ticker on Benzinga Pro in the month of December, and has attracted investor attention after reporting preliminary safety and efficacy data from a Phase 2 study.

PaxMedica: Clinical stage biopharmaceutical company PaxMedica Inc (NASDAQ:PXMD) ranks second on the list, moving down one position from the last report. Data shows 26.9% of the float short and a cost to borrow of 747.6%. Both figures are up from the last report, and the cost to borrow is one of the highest recorded in recent months. PaxMedica has made frequent appearances on the short squeeze leaderboard over the last three months.

Cosmos Health: Pharmaceuticals company Cosmos Holdings Inc (NASDAQ:COSM) remains third on the leaderboard for the second straight week. The company has seen shares volatile since announcing a 1-for-25 reverse stock split. Fintel data shows 61.3% of the float short and a cost to borrow of 103.9%. The stock was the 12th most searched ticker on Benzinga in the month of December.

Aerovate Therapeutics: Biopharmaceutical company Aerovate Therapeutics (NASDAQ:AVTE) ranks fourth on the leaderboard, moving up one position from last week. Data shows 36.5% of the float short and a cost to borrow of 7.7%.

Huadi International: Chinese company Huadi International Group (NASDAQ:HUDI) ranks fifth on the leaderboard, seeing the biggest jump among the top five candidates with a 61-position move from last week. Data shows 12.2% of the float short and a cost to borrow of 86.5%. The stock was one of the most searched tickers on Benzinga Pro in November after announcing a business transition to clean energy initiatives.

The short squeeze stocks to watch list is published weekly. Benzinga also recently introduced its Moneymaker Index, which provides five stocks seeing increased interest from investors.

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