A number of quantitative hedge funds in China experienced significant losses due to a short squeeze triggered by a glitch and subsequent stock rally. The rally, driven by China's stimulus measures, resulted in a $7 billion loss for short sellers of U.S.-listed Chinese stocks. Traders shorting companies such as Alibaba, Bilibili, XPeng, Li Auto, NIO, JD.com, and Pinduoduo faced severe mark-to-market losses. The rally was noted as the best in years, with short sellers facing $6.9 billion in losses.