Bears Pile Into CoreWeave as Wolfspeed Nears the Edge

Short sellers are actively adding to positions in several US names this week. CoreWeave stands out as the most notable new mover. Its short interest climbed to 23.7% of free float by 20 October, up 2.6 percentage points in just five days. That is a meaningful jump for a $28bn AI infrastructure company that has only been public since March.

Wolfspeed remains one of the most shorted names in the market at 85.6% of free float, ticking up another 1.8 points over the same window. Shares have lost 26% in three months. With zero availability of stock to borrow, bears already in the trade have little room to add, but there is no sign of covering either.

The highest borrowing cost on the board belongs to EverCommerce, at nearly 97% annualised. Its ORTEX short score sits at 96 out of 100. Only 1.6% of shares are available to borrow relative to current short interest, meaning this squeeze could ignite quickly if sentiment turns.

On the covering side, Chewy saw short interest fall 2 points to 89.2%, and Sarepta Therapeutics dropped 1.9 points to 22.2%.

Tesla is all over financial media after its latest earnings miss. The stock remains a short-seller favourite. American Airlines also saw fresh short building, up 1.1 points to 15.2% of free float this week, as traders grow cautious on the travel recovery.

Taiwan's export orders hit a record $114.2bn in September, up 62% year on year, a data point that could support sentiment toward chip-linked names. Semiconductor short sellers should take note.