Over the past week of ASIC short position data to 5 October, short sellers built their largest new positions in Lynas Rare Earths (LYC, up 0.97 percentage points to 11.53% of shares on issue), Artrya (AYA, up 0.92pp to 8.55%) and The Lottery (TLC, up 0.81pp to 9.29%). Rising short interest signals growing bearish conviction against a stock among hedge funds and institutional investors.
On the other side of the ledger, shorts covered most heavily in 4Dmedical (4DX, down 0.63 percentage points to 11.12% of shares on issue), Electro Optic Systems Holdings (EOS, down 0.52pp to 9.70%) and Pexa Group (PXA, down 0.47pp to 6.21%). Falling short interest can mean the bear case has played out — or that short sellers are locking in profits and reducing exposure.
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