Herbal Medicine Maker Blames Short Squeeze for 82,000% Stock Pop

A money-losing traditional Chinese medicine company blamed short sellers for last month’s massive stock gain, which briefly boosted its chief executive officer’s paper wealth to one of the world’s 100 largest fortunes.

Hong Kong-based Regencell Bioscience Holdings Ltd., which develops herbal treatments for ADHD and autism, saw its shares soar more than 82,000% from a February low. The company’s stock has since fallen about 80%.

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In interim financial results released Monday, Regencell — which has reported six consecutive years of net losses — pointed to short sellers ...