What happened Shares of Bed Bath & Beyond (NASDAQ: BBBY) were soaring over 10% higher in afternoon trading Thursday on no specific company news, though it may be that investors who heavily shorted the stock are covering their positions. So what At last count, over 76 million Bed Bath & Beyond shares were sold short, the highest number since last May, giving it a short interest ratio, or the time it would take for short-sellers to cover their positions, some 14 days. Anything over seven days is considered a lot, suggesting a short squeeze is playing a role in the big gains. It may have been precipitated by some unusual options activity for the stock as well. Investors may have been spurred to action by the home goods retailer's good fortune so far in 2021. The stock has jumped 40% over the first three weeks of the new year. Image source: Getty Images. Now what Bed Bath & Beyond is in turnaround mode, and it's starting to see some traction. Digital comps surged 77% last quarter, allowing margins to expand some and letting the retailer post an adjusted profit of $0.08 per share versus a $0.38 per share loss a year ago. Despite the green shoots, the home goods chain still has a lot of work to do, and the short sellers might ultimately be right. But when a stock is rocketing higher, they have to be mindful of the adage: The market can remain irrational longer than you can remain solvent. 10 stocks we like better than Bed Bath & BeyondWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Bed Bath & Beyond wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source