November 19, 2025 : The world of retail investing has witnessed explosive growth over the past few years, with platforms like Groww enabling millions of first-time investors to enter the market with the tap of a button. But with this democratization of investing has also come a worrying trend—an increasing appetite for high-risk trades driven more by greed than strategy. A recent market episode, highlighted by market expert and social media educator Abhijit Chokshi, brings this problem into sharp focus, offering a ₹100 crore lesson that every trader should pay attention to.
Chokshi, known for simplifying complex financial behaviour for retail traders, recently discussed how a wave of “blind shorting” on Groww and other retail platforms resulted in massive unexpected losses, collectively crossing ₹100 crore. According to him, the issue was not just the trades themselves, but the mindset that drove them.
The incident unfolded when several retail investors aggressively short-sold a mid-cap stock right before an expected correction. Many traders assumed the stock was overvalued and believed a major fall was “guaranteed.” Fuelled by herd behaviour and social media hype, thousands of users took leveraged short positions. However, the stock unexpectedly surged following a positive company announcement—triggering a brutal short squeeze.
A short squeeze occurs when a heavily shorted stock begins to rise instead of fall. As prices climb, short sellers are forced to close their positions by buying back the shares—ironically pushing the price even higher. For many new traders, this was their first encounter with a squeeze, and the experience was financially devastating.
Chokshi emphasized that the core problem was not market volatility but the psychological trap of greed. He explained that many traders ignored basic principles such as stop-losses, risk-reward calculations, and position sizing. Instead, they placed oversized bets based on confidence rather than caution, assuming the market would move the way they predicted. When it didn’t, they were wiped out within minutes.
He further pointed out that inexperienced traders often misunderstand short selling. Unlike traditional investing, where losses are limited to the amount invested, short selling carries unlimited loss potential. If a ₹200 stock goes to ₹400, a short seller loses double the amount. If it rises to ₹800 or beyond, the losses multiply enormously. This is what happened during the Groww-linked trading frenzy, where several users reportedly saw their accounts go deep into negative territory due to leverage.
Platforms have introduced warnings, educational pop-ups and risk indicators, but Chokshi argues that technology alone cannot counter emotional decision-making. What traders need is education, discipline, and a deeper understanding of market mechanics. He also urged influencers and pseudo-experts to act responsibly, given that many new investors blindly follow trading tips without verifying facts.
Chokshi also highlighted the dangerous rise of “get-rich-quick” behaviour in online investing communities. Many users believe the fastest way to earn money is by taking high-leverage positions. This creates a casino-like mentality, where traders are emotionally chasing quick wins rather than focusing on consistent, long-term goals. This mentality, according to him, is the biggest driver of massive losses in retail trading today.
The ₹100 crore collective loss is not just a number—it represents shattered confidence, drained savings, and a painful reminder that the stock market is not a shortcut to wealth. Chokshi’s analysis points to a larger structural issue: the lack of foundational knowledge among retail traders. While platforms like Groww have made trading accessible, ease of access has also made it dangerously simple for inexperienced users to take risks they do not fully understand.
Market analysts believe the event should serve as a wake-up call. SEBI has been tightening norms around leverage and derivatives trading, but experts argue that more investor education initiatives are necessary. Platforms may also need to implement stronger guardrails, especially for leveraged and derivative products.
Chokshi concluded by saying that greed is the biggest enemy of every trader. Markets will always move unpredictably, but the only thing traders can control is their behaviour. Risk management, patience, and discipline must become non-negotiable habits. Without them, even the best tools and platforms cannot protect traders from catastrophic losses.
The incident stands as a clear warning to India’s fast-growing retail investor community. With more than 5 crore new investors entering the market since the pandemic, financial literacy must grow at the same pace. Otherwise, the same mistakes will continue to repeat, each time costing even more.
The ₹100 crore lesson serves as a reminder: in the stock market, greed may promise quick profits, but discipline is what delivers real success.
Summary
Massive blind shorting by retail investors led to over ₹100 crore in losses, with Abhijit Chokshi warning that greed, lack of risk management, and misunderstanding of short selling are fueling dangerous trading behaviour.