A record streak of short bets is at risk of unwinding, setting the stage for a potential US equities comeback, according to Citadel Securities' Scott Rubner. The market strategist warns that hedge funds and systematic strategies are positioned to drive the next wave of buying as short sellers face mounting pressure.

Rubner's analysis comes amid heightened volatility in equity markets, where bearish positions have reached historic levels. The potential for a short squeeze could trigger rapid price appreciation as traders rush to cover losing positions. This dynamic has historically preceded significant market rallies, particularly when combined with institutional buying pressure.

The implications extend beyond immediate price movements. A successful short squeeze could reset market sentiment, encouraging broader participation from institutional investors who have remained cautious. Rubner's warning suggests the current market setup may be more favorable to upside momentum than many investors realize.