HAO — Haoxi Health Technology — entered this week at the centre of one of the most violent micro-cap unwindings of the year.
The catalyst was a $6.5 million registered direct share offering announced on May 11. For a company whose market cap barely topped $1.3 million as of the latest reading, the offering amounted to a massive dilution event. The stock responded immediately. Over the following four sessions the share price fell 97% from roughly $0.73 to $0.02, wiping out nearly the entire market value of existing shareholders.
Short interest tells the chaotic story of what followed. In a span of just four trading days, estimated short shares exploded from around 40,000 to a peak of 3.26 million on May 13 — a 4,715% weekly surge — before dropping 42% in a single session on May 14 to 1.88 million shares. At its peak, that represented around 43% of the float; it eased back to roughly 25% by May 14, still a dramatic change from the sub-1% levels that prevailed through all of April. The ORTEX short score swung accordingly, peaking at 49.4 on May 13 before pulling back to 36.7 by May 14 — volatile movement that reflects rapid position-building and partial covering within the same week.
The lending market has not tightened in the way one would expect from a true short squeeze. Availability remains loose at 687% of short interest, meaning there are roughly seven shares available to borrow for every one already borrowed. Cost to borrow has inched up to 3.3% — about 41% higher than a week ago — but that is a negligible fee in absolute terms, far from the double-digit rates that typically accompany a genuine squeeze dynamic. The ORTEX availability rank of 43 and utilisation rank of 43 both sit near the middle of the universe, confirming that the lending market is not under meaningful stress despite the extreme short interest moves.
The ownership picture reinforces how thin this market is. The top declared holders — Zhen Fan, Hongli Wu, and Lei Xu — each hold only a fraction of a percent of shares. The only institutional names present are quantitative market-makers (XTX Markets, Two Sigma, Susquehanna), each with holdings in the tens of thousands of shares. There is no active fundamental shareholder of size on the register, which means price discovery in the current environment is almost entirely driven by the mechanics of the offering and short-side flows rather than any fundamental reappraisal of the business.
Earnings history offers limited read-through. The most recent print in late April saw a negligible 1-day move of -0.9%, though the five-day move was -14%. The October 2025 print produced a small positive reaction. Neither tells you much when the stock has since collapsed 98% for unrelated reasons. The next scheduled earnings event is flagged for October 20, 2026 — far out.
The number to watch is the pace at which the May 12 direct-offering shares settle and circulate in the float, and whether the elevated short position of 25% of free float continues to unwind or rebuilds as the new shares become available for lending.
See the live data behind this article on ORTEX.
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