Cost to borrow GAUZ has hit 94.76% — more than quadruple last week's level. Short interest is rising fast. The lending market tells the real story here.
The cost to borrow Gauzy Ltd. stood at roughly 21% for most of April. It barely moved. Then the stock doubled in a week — up 101% over the past seven days — and the lending market snapped.
By May 11, CTB had jumped to 28.5%. By May 12, it hit 94.76%. That's a 336% move in cost to borrow in one week.
Short sellers are paying nearly 95% annualised to hold their positions.
SI rose 63% in one week to 1.44% of free float. The absolute level remains modest — under 1.5% of shares. But the direction is notable. Short sellers are adding exposure into a sharp rally.
Shares short climbed from ~166,000 on May 4 to ~270,000 by May 12. That's a near-doubling of the position in eight days.
The ORTEX short score reached 58.8 as of May 11 — and the utilization rank sits at the 2nd percentile. That means availability of shares to borrow is extremely tight relative to peers. Few shares remain in the lending pool, which is exactly what drives CTB to these levels.
The spike in borrowing cost reflects a borrowing supply squeeze. At these CTB levels, lenders are pricing in scarcity. The stock's 52-week utilization peak hit 100% — and as recently as May 11, the reading was 96.1%.
By May 12, that reading pulled back to 55.5%, which suggests some positions were closed or new supply entered the pool. But CTB remained elevated. Lenders are still demanding a premium.
The sharp divergence between analyst targets and the current price — $10 target vs. sub-$1 close — is the backdrop. Short sellers appear to be betting the rally is overdone. The lending market is making that bet increasingly expensive.
See the live data behind this article on ORTEX.
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