Short Squeeze Alert: High Short Interest Hits $RKT, $KSS, $WOLF Mid-2025

The landscape of short selling in 2025 is heating up, with several stocks exhibiting notably high short interest ratios—often above 30% of their float—combined with potential catalysts such as earnings releases or operational updates. This environment sets the stage for significant price volatility, particularly in names where tight floats amplify the impact of buying pressure. While the risk of short squeezes garners attention, a deeper examination of the underlying data and market dynamics is essential to separate speculative noise from genuine opportunity.

Defining the Short Interest Landscape

Short interest, expressed as a percentage of a stock’s float, reflects the proportion of shares borrowed and sold by investors betting on a price decline. When paired with low trading volume or upcoming events like earnings reports, high short interest can create conditions for a squeeze if positive news prompts rapid covering by short sellers. Data compiled from recent market analyses, including figures available through financial platforms, highlight several stocks under intense short pressure as of mid-2025. This analysis focuses on a selection of such names, grouped by sector, to evaluate the likelihood of sharp price movements.

Consumer and Retail: Rocket Companies (RKT) and Kohl’s (KSS)

In the consumer finance and retail sectors, Rocket Companies (RKT) and Kohl’s (KSS) stand out with short interest ratios reportedly nearing 44% and 47% of their respective floats as of July 2025. For RKT, a mortgage lender, the upcoming Q2 2025 earnings report (April–June) could serve as a trigger, especially if interest rate expectations shift or housing demand data surprises to the upside. Bloomberg data indicates RKT’s short interest has risen by approximately 10% since Q1 2025, suggesting growing bearish sentiment amid a challenging mortgage market.

Kohl’s, meanwhile, faces ongoing pressure from e-commerce competition and margin concerns. With short interest climbing to nearly half its float, any positive revision in Q2 2025 guidance—perhaps tied to cost-cutting or store optimisation—could force short sellers to rethink their positions. However, both stocks carry risks: RKT’s reliance on macroeconomic factors remains a wildcard, while Kohl’s must demonstrate consistent operational improvement to justify a sustained rally.

Technology and Semiconductors: Wolfspeed (WOLF)

Turning to the technology sector, Wolfspeed (WOLF), a player in silicon carbide semiconductors, shows a short interest ratio of around 47% as of the latest July 2025 updates from FactSet. The company’s focus on electric vehicle and renewable energy applications positions it in a high-growth niche, but production delays and elevated valuations have attracted bearish bets. The Q2 2025 earnings release, expected in August, offers a potential catalyst if Wolfspeed can demonstrate progress in scaling output. Investors should note, however, that short squeezes in tech often fizzle without fundamental backing—sentiment alone rarely sustains gains.

Biotech and Healthcare: INmune Bio (INMB), Altimmune (ALT), and AnaptysBio (ANAB)

The biotech and healthcare space presents a cluster of heavily shorted stocks, including INmune Bio (INMB) at 39%, Altimmune (ALT) at 38%, and AnaptysBio (ANAB) with similarly elevated levels as per recent market data for July 2025. These firms, often driven by clinical trial outcomes, are classic candidates for volatility. INMB’s focus on Alzheimer’s therapies could see sharp moves if mid-2025 trial data exceeds expectations, while ALT’s weight loss drug pipeline remains under scrutiny following mixed historical results. ANAB, with its dermatology and immunology focus, awaits key updates in Q3 2025 (July–September) that might shift the narrative. The high short interest here reflects scepticism about timelines and efficacy, but a single positive headline could ignite covering activity.

Energy and Consumer Goods: Eos Energy (EOSE), Hims & Hers (HIMS), and Beyond Meat (BYND)

Lastly, a diverse group spanning energy and consumer goods includes Eos Energy (EOSE), Hims & Hers (HIMS), and Beyond Meat (BYND), each with short interest exceeding 30% of float based on July 2025 figures from market trackers. EOSE, a battery storage firm, could benefit from policy tailwinds or contract announcements in Q3 2025, though execution risks persist. HIMS, operating in telehealth, has seen short interest spike amid concerns over growth sustainability; its Q2 2025 results will be critical. Beyond Meat, long a polarising name, continues to grapple with declining demand for plant-based products—shorts may face pressure only if a strategic pivot or partnership emerges. These stocks, while intriguing, carry speculative profiles that demand caution.

Short Interest Snapshot

Risks and Realities of Short Squeezes

While high short interest and tight floats can create explosive price action, the reality of short squeezes is often less dramatic than anticipated. Market mechanics, such as borrowing costs and the availability of shares to short, play a significant role. Moreover, institutional investors with deep pockets can weather temporary spikes, delaying or even preventing a full squeeze. Sentiment on platforms like X, including discussions from accounts such as Next100Baggers, often amplifies interest in these setups, but retail enthusiasm alone rarely moves the needle without fundamental catalysts. Investors must weigh short-term volatility against longer-term business health when approaching these names.

Conclusion

The current crop of heavily shorted stocks in 2025 offers a mix of opportunity and peril. While names like RKT, KSS, and WOLF exhibit conditions ripe for volatility, the likelihood of sustained squeezes depends on tangible developments—be it earnings beats, clinical data, or strategic shifts. Prudent analysis demands a focus on fundamentals over hype, ensuring that any position taken is grounded in data rather than speculation. As Q2 and Q3 2025 catalysts approach, these stocks warrant close monitoring, but with a healthy dose of scepticism.

References

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• Bloomberg Markets. (2025, July). US Equity Short Interest—Sector Overview. Retrieved from https://www.bloomberg.com/markets
• Finviz. (2025, July). Short Interest Percentages by Ticker. Retrieved from https://finviz.com
• High Short Interest Stocks. (2025, July). Database of High Short Interest Stocks. Retrieved from https://www.highshortinterest.com/
• MarketBeat. (2025, July). Rocket Companies (RKT) Short Interest Ratio and Volume. Retrieved from https://www.marketbeat.com/stocks/NYSE/RKT/short-interest/
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• Yahoo Finance. (2025, July). Real-Time Short Interest Data for KSS, WOLF, INMB, ALT. Retrieved from https://finance.yahoo.com