Hedge funds have lost over $6 billion in 2023, having misjudged the strength of the US consumer sector, particularly in the cruise lines and hotels industry. Royal Caribbean and Carnival, two of the S&P 500's most shorted companies, saw their value double in 2023, resulting in $6.4 billion in mark-to-market losses for hedge funds. Despite the economic growth challenges and expectations of an impending recession earlier in the year, these businesses remained resilient. Norwegian and Royal Caribbean returned to profitability while Carnival reduced its losses by 78% yearly. Rising revenues have also helped these companies reduce their debt piles, accumulated due to the coronavirus pandemic, although they remain highly leveraged.