Bears Target Cerebras, Birkenstock — Wolfspeed Shorts Flee

Short sellers made dramatic moves this week. CBRS saw the sharpest jump — short interest leapt from 6.3% to 27.7% of free float in just seven days. Bears piled in as the AI chip maker faces intense scrutiny after its high-profile Nasdaq debut.

BIRK also drew heavy new shorts. SI climbed nearly 9 points to 30.9% of free float. Skeptics appear to be betting the sandal brand's premium valuation has stretched too far.

HTZ remains a popular bear target. Hertz holds 45% SI, up 5.4 points this week. The car rental giant continues to struggle with its debt load and used-car losses.

XOMA is close to a squeeze trigger. SI hit 93% of free float — up 14 points in a week. Any positive catalyst could force a violent covering rally.

On the flip side, WOLF short sellers covered aggressively. Wolfspeed's SI fell from 118% to 100% of free float — an 18-point drop. It still remains extreme but the direction has shifted.

VITL also saw shorts pull back. Vital Farms SI dropped 6.6 points to 33%. The egg brand has rallied sharply on supply-shortage tailwinds.

Macro backdrop matters too. US inflation hit 4.2% in May — a three-year high. Rate-hike fears are injecting fresh volatility, which typically favours short sellers in rate-sensitive names.