most shorted stocks: how to read short interest

Most shorted stocks

Short sellers and long investors both watch the phrase "most shorted stocks" closely. In this guide you will learn what the term means in U.S. equities, how the main short‑interest metrics are calculated, where data comes from, how to interpret high short interest, and practical steps to verify and monitor heavily shorted names. By the end you will know which tools to use, what risks to mind, and how to cross‑check reported figures when analysing short positions.

Definition and key concepts

Short selling is a trading technique where an investor borrows shares and sells them on the open market with the intention of buying them back later at a lower price. The borrower returns borrowed shares to the lender after closing the position; profit or loss depends on the price difference between sell and repurchase.

Short interest is the aggregate number of shares that have been sold short but not yet covered or closed. Exchanges and regulators publish short interest reports at regular intervals; data vendors and screeners aggregate this information for investors.

Short interest as percent of float compares the number of shares sold short to the available float (shares available for public trading). This metric helps normalize short positions across companies with very different share counts.

Days to cover, often called the short ratio, is calculated as shares sold short divided by average daily trading volume. It estimates how many trading days it would take for short sellers, in aggregate, to buy back shares using typical volume.

Borrow fee (cost‑to‑borrow) and availability measure how expensive and difficult it is to borrow shares for shorting. A high borrow fee or limited availability raises the likelihood of forced covers and can heighten short‑squeeze risk.

How “most shorted” is measured and reported

Exchange and regulatory reports: In the U.S., FINRA and the exchanges (NASDAQ, NYSE) publish short interest data on fixed schedules. These reports show shares short by ticker at the report date but have inherent reporting lags. Because data is reported bi‑monthly or monthly depending on the venue, published short interest can be stale compared to intraday market conditions.

Data vendors and real‑time sources: Commercial platforms aggregate exchange reports and supplement them with borrow‑market indicators (utilization, borrow fee) and inferred short flows. Examples of providers used in market commentary include Fintel, ShortSqueeze.com, ShortInterestTracker, Yahoo Finance (Most Shorted Screener), StockAnalysis, HighShortInterest, TheOnlineInvestor and Seeking Alpha. Each provider may weight sources differently or include extra fields, causing ranking differences.

Differences between metrics: Rankings for "most shorted stocks" vary because of timing (report date), denominator choice (shares outstanding vs float), exchange coverage (OTC and foreign listings), and whether borrow‑market variables are considered. Some lists rank by absolute shares short; others use percent of float or days to cover.

Interpretation and market significance

What high short interest can indicate:

• Elevated bearish sentiment: institutional or hedge fund conviction that a company’s fundamentals or prospects will weaken.
• Speculative positioning: directional bets ready to profit from declines or hedge other exposures.
• Market structure quirks: low float or share lending constraints that invite higher reported short percentages.

Short squeezes and catalysts: A short squeeze can occur when heavy buying pressure forces short sellers to cover, which in turn pushes the price higher and prompts further covering. Key catalysts include positive company news, sudden spikes in buy volume, activist events, or coordinated retail interest. Stocks with a combination of high short % of float, low float, and elevated days‑to‑cover are often flagged as having squeeze potential.

Risks to short sellers: Shorting carries theoretically unlimited upside risk if a stock rallies. Additional practical risks include borrow recalls (lenders asking for shares back), rapidly rising borrow fees, liquidity dry‑ups, and forced buys by brokers to close unpaid borrow positions.

Market mechanics and regulation

Locate and borrow requirements: Brokers usually must locate shares available to borrow before allowing a short sale. This locate process is designed to prevent naked shorting and ensure shares can be delivered on settlement.

Regulation SHO and Threshold List: Regulation SHO governs short‑sale practices and establishes the Threshold Securities List—tickers with recurring failures to deliver. Rule revisions and uptick rules have evolved historically to limit abusive shorting; current rules emphasize locate, close‑out obligations, and reporting.

Market surveillance and reporting obligations: Exchanges, FINRA, and clearing firms monitor short activity and reporting. Surveillance aims to detect manipulative practices while preserving legitimate hedging and directional trading.

Common metrics and how to read them

Short interest (shares): This is the headline number of shares sold short. For example, a company might have 10 million shares reported as short. Large absolute values matter for large‑cap stocks but must be read against float.

Short % of float: Compute as (shares sold short / shares float) × 100. A stock with 20% short interest has one shorted share for every five shares in the float—an unusually high level that can indicate stress or heavy hedging.

Days‑to‑cover (short ratio): Calculate as shares sold short ÷ average daily volume. Common heuristic thresholds:

• <1 day: very liquid; short covering is easier.
• 1–3 days: normal range for many names.

• 5 days: elevated; covering could push prices materially if volume spikes.

Borrow fee and utilization: High utilization (most lendable shares are loaned out) and rising borrow fees signal scarcity. Rapid fee increases often precede squeezes because short sellers face mounting carrying costs.

Net short flow / short change: Comparing consecutive reports shows whether short positions increased or decreased. A sharp rise in short interest can be a red flag for investors and signals changing market sentiment.

Tools, screeners and data providers

Screeners help identify the "most shorted stocks" by ranking tickers on short interest metrics. Commonly used tools include:

• Yahoo Finance Most Shorted Screener: provides lists ranked by short % or shares short and includes historical SI trends.
• Fintel Short Squeeze Leaderboard: combines short % of float with borrow fee and other squeeze indicators.
• ShortInterestTracker: maintains a database and sortable lists of high short interest tickers.
• ShortSqueeze.com: offers short interest data, borrow rate indicators and alerts.
• StockAnalysis.com: ranks tickers by short % of float and short interest metrics.
• HighShortInterest.com: focuses on names with very high short interest, often >20%.
• TheOnlineInvestor interactive charts: visualizes most‑shorted lists and historical SI trends.
• Seeking Alpha reporting and news summaries: editorial pieces that highlight heavily shorted names and discuss context.

Each tool offers different strengths: some provide borrow‑market data, others emphasize historical SI charts or peer comparisons. Cross‑checking multiple sources reduces reliance on stale or idiosyncratic data.

Representative short‑interest data (As of Jan 28, 2026)

As of Jan 28, 2026, according to Benzinga exchange‑reported data, several U.S.‑listed names showed measurable short interest changes that illustrate how reported metrics read across companies:

• NioCorp Developments Ltd (NB): 8.88 million shares sold short, representing 7.81% of float; days‑to‑cover ~2.68. Short interest rose 29.09% since its last report.

• American Electric Power Co Inc (AEP): 18.05 million shares sold short, 3.38% of float; days‑to‑cover ~5.26. Short interest fell 20.28% since its last report.

• The Home Depot Inc (HD): 11.34 million shares sold short, 1.14% of float; days‑to‑cover ~2.83. Short interest rose 10.68% since its last report.

• Vale SA (VALE): 71.80 million shares sold short, 1.68% of float; days‑to‑cover ~3.34. Short interest fell 6.15% since its last report.

• Nasdaq Inc (NDAQ): 9.44 million shares sold short, 2.09% of float; days‑to‑cover ~2.64. Short interest rose 14.21% since its last report.

• Medtronic PLC (MDT): 14.40 million shares sold short, 1.13% of float; days‑to‑cover ~2.64. Short interest fell 4.24% since its last report.

These examples show how short interest varies by company size, float and trading volume. Reporting date: Jan 28, 2026; source: Benzinga (exchange‑reported short‑interest summaries).

Note: reported short interest updates periodically; figures above reflect the exchange reports captured and summarized by the cited data provider on the date noted.

Interpretation of the example data

The tickers above show a range of short‑interest profiles. NioCorp's 7.81% short % of float and recent 29% rise suggests growing bearish positioning relative to its float size. AEP and VALE show moderate short % with recent declines, suggesting reduced bearish bets. Home Depot and Nasdaq had modest rises in short interest but remain low as percent of float. Days‑to‑cover figures near 2–3 indicate that, under typical volume, covering positions would take a few trading days—reasonable for many market participants but still relevant if volume surges.

Remember: a rising short % is an indicator of sentiment shift, not a standalone forecast. Always cross‑check borrow rates, recent news, earnings calendars and peer group metrics before inferring a likely price path.

Strategies and trading considerations

For longs seeking squeeze candidates: Look for a combination of high short % of float, rising short change, falling available borrow, and low free float. Also monitor upcoming catalysts (earnings, regulatory decisions, product launches) and unusual volume spikes. Be cautious: squeezes can be short‑lived and followed by sharp reversals.

For short sellers: Risk management is primary. Use position sizing, stop‑losses, and hedges (options where available) to limit asymmetric losses. Monitor borrow cost, utilization and recall risk continuously. Be prepared to unwind positions if borrow fees spike or lending pools tighten.

For long‑term investors: High short interest can signal market skepticism that warrants further fundamental research. Use short interest as a sentiment input, not the sole investment signal.

This article does not provide investment advice. It aims to explain metrics and risks in neutral terms.

Limitations, data caveats and potential manipulation

Reporting lag and stale data: Public short interest reports are typically delayed by days or weeks. Market conditions can change quickly; real‑time borrow‑market indicators sometimes tell a different story than exchange SI snapshots.

Differences across exchanges and OTC listings: Some tickers trade on multiple venues; OTC and Pink sheet listings may have limited public short data. International listings follow different reporting rules.

Borrow market opacity & fee volatility: Much of the short borrow market operates off‑exchange via prime brokers. Fees and utilization can change rapidly and are not always reflected in exchange SI reports.

Abuse and manipulation risks: While short‑watching and public scrutiny can be constructive, misinformation or coordinated campaigns can distort perceptions of which are the "most shorted stocks." Use multiple verifiable sources before acting on claims of extreme shorting.

Historical examples and case studies

Retail‑led squeezes (e.g., 2021 episodes) and hedge‑fund squeezes show how persistent buying pressure and social coordination can amplify price moves in heavily shorted names. These cases illustrate several mechanics:

• Concentrated short positions in small float securities increase vulnerability.
• Rapid inflows of buying demand can force margin calls and recall events.
• Media and social discussion magnify attention and liquidity imbalances.

Case studies teach that while short squeezes can be dramatic, they are often unpredictable and can produce significant losses for late participants.

Short interest in other asset classes

Crypto/token shorting: In digital assets, short exposure is typically taken through derivatives (futures, perpetual swaps) and margin trades on exchanges. The comparable metrics are open interest and funding rates rather than short interest as percent of float. Because token supply and derivatives liquidity differ from equities, direct comparison of equity SI metrics to crypto is not appropriate.

International equities: Reporting cadence, locate rules and borrow markets differ across jurisdictions. European and Asian venues may not publish short interest with the same granularity or frequency as U.S. exchanges.

How to find and verify the most shorted stocks (step‑by‑step)

1. Check exchange short interest reports: Start with FINRA, NASDAQ and NYSE published SI reports for the official snapshots.
2. Use multiple data vendors: Compare lists from at least two commercial providers (e.g., Fintel, ShortSqueeze, Yahoo Finance) to spot discrepancies.
3. Inspect short % of float and days‑to‑cover: Look for names where both are elevated versus peers.
4. Review borrow market indicators: Check utilization and cost‑to‑borrow where available; rising fees indicate scarcity.
5. Scan news and catalysts: Verify recent filings, earnings, litigation or sector news that could explain short positioning.
6. Check liquidity and float: Ensure the float is not so tiny that normal trading could produce outsized moves.
7. Re‑confirm on report date: Because SI reports lag, note the report date and consider intraday borrow signals if you require more current information.

Practical checklist:

• Short % of float
• Days‑to‑cover
• Recent % change in short interest
• Borrow fee trend and utilization
• Peer group comparison and industry average
• Recent news, filings or catalysts
• Trading volume and market cap

See also

• Short squeeze
• Short interest
• Regulation SHO
• Short selling
• Borrow cost
• Days‑to‑cover
• Market microstructure

References and data sources

• FINRA, NASDAQ and NYSE short interest reporting publications (regulatory reports)
• Benzinga exchange‑reported short interest summaries (data snapshot cited above; Jan 28, 2026)
• Data providers and screeners: Fintel, ShortSqueeze.com, ShortInterestTracker, Yahoo Finance (Most Shorted Screener), StockAnalysis, HighShortInterest, TheOnlineInvestor, Seeking Alpha

External links (trackers and screeners — names only, no URLs)

• Yahoo Finance Most Shorted Screener
• Fintel Short Squeeze Leaderboard
• ShortInterestTracker (short interest lists)
• ShortSqueeze.com short‑interest database
• StockAnalysis most‑shorted list
• HighShortInterest database
• TheOnlineInvestor interactive charts
• Seeking Alpha coverage

Final notes and next steps

Understanding which are the "most shorted stocks" requires looking beyond a single reported number. Combine exchange short interest snapshots, borrow‑market signals and newsflow to create a more complete picture. If you want a practical next step, start by bookmarking a reputable short‑interest screener, set alerts for borrow fee spikes, and cross‑verify exchange report dates.

Explore trading and monitoring options on Bitget to view derivatives liquidity or use Bitget Wallet to manage positions and custody needs. To stay informed, check official exchange reports and trusted data providers on a regular cadence.

Further exploration: use the checklist in this article when you review any "most shorted stocks" list. That process helps you separate signal from noise while staying mindful of the reporting limitations and market risks.

Reporting date for sample data above: Jan 28, 2026. Source: Benzinga exchange‑reported short interest summaries.