Short-squeeze stocks grabbed headlines last year following the monumental meme stock frenzy in 2021.

The phenomenon emerged from the trenches of Reddit where traders banded together leaving short-sellers scrambling to cover their positions.

In the blink of an eye, these stocks witnessed massive price jumps, defying investing logic. Since then, meme stocks have become part of Wall Street’s convention, piquing the interest of investors looking for quick gains.

However, it’s imperative to understand that not all short-squeeze stocks are created equal. For valid reasons, some stocks face heavy shorting, and investing in them comes with massive risks.

In this article, we’ll delve into three short-squeeze stocks that are defying the odds, delivering incredible returns, and capturing the attention of those daring enough to ride the rollercoaster.

Here are three of the most shorted stocks to invest in now.

EVgo Inc. (EVGO)

• Short Interest (%): 34.5%

Electric vehicle charging infrastructure provider EVgo (NASDAQ:EVGO) has been tracking well on Reddit, a platform instrumental in ushering in the meme stock phenomena in 2021.

Short interest remains remarkably high in the stock, witnessing massive spikes in value in the past month. Moreover, with a beta value of over 1.8, it moves almost two times as fast as the market.

EVgo operates a robust network of fast EV chargers across more than 800 locations spread across the U.S., boasting a customer base of over 300,000. Roughly two-thirds of the U.S. population has access to its fast chargers, with unmatched coverage of the U.S. within a 10-mile radius.

Unlike many stocks that Redditors rally behind, EVgo operates a flourishing business, with revenues growing by double-digit margins over the past few quarters.

In its most recent quarter, it posted a massive 282% bump in sales to $27.3 million. As we advance, it is poised to continue flourishing and trade in the green as it has over the past few months.

Upstart (UPST)

• Short Interest (%): 42.09%

Upstart (NASDAQ:UPST) operates a powerful AI-driven lending platform that soared in popularity during the risk-on sentiment in the U.S.

However, with the Fed pivoting to a hawkish stance, its business suffered immensely following the rising inflationary pressures. Upstart’s effective AI models have proven more effective than the traditional FICO approach, will drive long-term success for the business.

The current banking crisis and a pessimistic economic outlook weigh the company’s prospects. It has enough in its cash till to endure the pain until its business picks up the pace again.

Short interest in the stock has been rising over the past few months and currently stands at a lofty 42%. Moreover, its stock is up over 28% year-to-date and trades at just 1.65 trailing twelve-month sales, roughly 31.5% lower than its sector median.

Marathon Digital (MARA)

• Short Interest (%): 28.5%

Marathon Digital (NASDAQ:MARA) has been ticking upwards in the past month, registering over 20% growth. Its stock price has been surging following the rally in Bitcoin (BTC-USD), which is up over 60% since the beginning of the year.

The firm has significantly expanded its mining capacity in recent months, announcing record production of 687 BTC, a massive 45% bump month-over-month. It had 8,260 BTC, worth more than $230.3 million.

MARA stock trades at a hefty discount to its intrinsic value. According to Tipranks analysts, Marathon boasts a 35% upside from current levels. The short interest in its stock points to strong rallies ahead.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines