SoftBank Group's stock rally has increased the risk of a short squeeze as short positions hit a one-year high. Short interest as a percentage of float rose to 2.27% as of Wednesday, marking the highest level since July 2025. The notional short interest value reached $3.9 billion, the largest since at least 2015, according to S3 Partners LLC data cited by Bloomberg via livemint.com.
The surge in short positions coincides with renewed momentum around OpenAI's new GPT-6 Astra model, which has contributed to SoftBank's stock gains. Investors holding bearish bets face potential forced exits, which could further propel the stock price upward. The data from S3 Partners LLC highlights that the volume and value of short interest have climbed sharply, signaling heightened market tension.
This development is significant given the scale of short interest relative to SoftBank's float and historical levels. The $3.9 billion short interest value is notable compared to prior years, underscoring increased bearish sentiment despite the stock's rally. The situation mirrors other market episodes where high short interest preceded sharp price moves, making SoftBank a focal point for traders monitoring short squeeze risks.
Short interest data as of Wednesday shows the highest short positions in over a year, with $3.9 billion in notional value, per S3 Partners LLC. Market participants will watch how these elevated short bets interact with ongoing stock momentum driven by AI developments such as GPT-6 Astra.