PN — Skycorp Solar Group Ltd — has become one of the most explosive small-cap stories of the week. Cost to borrow has surged to 847%, short shares are up over 6,000% in seven days, and the stock is up 177% week-over-week.
The cost to borrow tells the sharpest story. As recently as May 1, CTB sat at 27%. It hit 587% on May 4. It now stands at 847% — a near-3,000% move in one week.
That is a borrow market in freefall. Availability has collapsed to critical levels. With utilization at 94.3% — near the 52-week high of 96.6% — there are almost no shares left to lend. Traders wanting to open new short positions are paying an annualised rate of 847% to do so.
At that cost, holding a short position overnight becomes prohibitively expensive. That dynamic alone can accelerate a squeeze.
The short interest history shows violent, rapid swings. Shares short fell to just 6,223 on April 30 — down from 125,000 earlier in the month. Then they exploded:
That is a 6,096% week-on-week jump. New short sellers piled in even as the stock rallied 177%. The ORTEX short score reflects the pressure. It stood at 39.7 on April 24. It now sits at 81.3, ranking at the 1st percentile for short squeeze risk.
The stock closed at $6.88 on May 5, up 27% on the day and 177% on the week. Short sellers are fighting against a rising tape while paying record borrow rates to stay in the trade.
The float is very small. Official FINRA data from mid-April showed just 14,381 shares short at settlement. The current ORTEX estimate of 450,734 shares suggests the borrow demand is enormous relative to available supply. With availability near zero, even a modest wave of short covering could move the price sharply.
Watch: Whether short sellers capitulate at these borrow costs, or whether fresh shorts continue to press against the rally.
See the live data behind this article on ORTEX.
Open PN on ORTEX →ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
