According to a recent report, MicroStrategy (MSTR) is one of the most heavily shorted stocks, with short positions accounting for 14% of its $34 billion market capitalization. Analysts believe that the high short interest may stem from basis trading, where investors buy spot Bitcoin ETFs (such as BlackRock's IBIT) while shorting MSTR to profit from the narrowing of the premium. The large purchase of IBIT by Jane Street also supports this theory. However, this trade has performed poorly so far this year, with MSTR down 20% and IBIT down 27%.