| Carvana (CVNA), the used car dealer known for its rather unique car vending machines, has seen its stock rise by a staggering 1,000% this year. 
Just this week, management caught investors by surprise – delivering its second-quarter earnings report a month earlier than expected. And with what Carvana shared, it was no surprise that they wanted to get the news out early. It beat revenue estimates, bringing in $2.96 billion for the quarter. It also announced a deal to reduce its costly debt. Shares burst even higher on the results. But the stock's meteoric rise isn't exactly what we'd call a genuine comeback. As Benjamin Graham once said, "In the short run, the market is a voting machine but in the long run, it is a weighing machine." In the high-stakes game of Wall Street, short-term trends often overshadow long-term fundamentals. And there's another factor at play here driving shares at a dangerous clip – that could burn unwitting investors. Call it a "Short Squeeze Mirage." A short squeeze occurs when a stock's price increases sharply, forcing short sellers to buy it in order to forestall even greater losses. Their scramble to buy only adds to the upward pressure on the stock's price. Carvana's short interest is close to 41.5 million shares, representing about half of the company's total float. This makes it the second most shorted company in the U.S. The stock has risen close to 100% in the last 30 days, likely forcing many short sellers to cover their positions. Underneath the surface, the company is grappling with a host of issues that are being masked by this short-term rally. But our data provides a voice of reason amidst the frenzy. And we're here to give you the real story... Click here to continue reading Until next time, | 
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