QTUM Shorts Retreat — But the Lending Market Hasn't Recovered

The short squeeze dynamics that gripped QTUM last week have partially unwound. Short interest has fallen sharply. The lending pool, however, remains stressed — and the cost to borrow keeps climbing.

What Changed Since the Last Report

Five days ago, ORTEX reported availability at 13.1% — the tightest reading in nearly a year. Short interest stood around 482,000 shares.

Both readings have shifted. Short interest has dropped 18.8% over the past week to roughly 373,000 shares, now sitting at 1.36% of free float. Availability has loosened to 52.9% — still firmly in tight territory, but well off its near-record low.

This is not a return to normal. Availability averaged well above 100% through most of May and early June. At 52.9%, the lending pool remains constrained relative to its recent baseline.

The Cost to Borrow Tells a Different Story

Despite short interest falling, the cost to borrow has continued rising. CTB stood at 0.75% in mid-June. It crossed 2.08% on June 23. It now sits at 1.68% — up 70% over the past month.

That divergence is notable. Fewer shares are being shorted, yet lenders are still charging more. It suggests the easy borrow has not returned. New shorts face meaningfully higher costs than those who entered the trade three weeks ago.

The Week's Moves in Context

QTUM has dropped 7.1% over the past week. The price now sits at $155.97. That decline coincides directly with the unwinding of the short build — not a squeeze, but a gradual cover and retreat.

Options positioning remains slightly elevated. The put-call ratio sits at 0.76, roughly 1.6 standard deviations above its 20-day mean of 0.66. Puts remain relatively more in demand than the ETF's recent history suggests is typical, though the signal is not at an extreme level.

The ORTEX short score has drifted lower. It fell from 47.8 on June 22 to 46.8 on June 25. That modest decline reflects the reduction in short positions, but the score has not reset to pre-stress levels.

Data Summary

• SI % of free float: 1.36% (down from 1.92% peak)
• SI 1-week change: –18.8%
• Availability: 52.9% (52-week low: 12.8%)
• Cost to borrow: 1.68%, up 70% vs one month ago
• Price 1-week change: –7.1%
• PCR: 0.76 (z-score: +1.59 vs 20-day mean)
• Short score: 46.8