Star gets hit (+4.20%) while shorts crowd into uranium again
January 2025
January’s cleanest signal was The Star (SGR): short interest jumped from 6.84% to 11.03% (+4.20%) in a market that was basically flat (period average change: -0.01%). Uranium stayed a battleground with Boss Energy (BOE) at 18.96% (+1.57%), Paladin (PDN) at 15.92% (+0.55%) and Deep Yellow (DYL) at 10.80% (+0.13%). Shorts trimmed Pilbara Minerals (PLS) from 14.00% to 12.69% (-1.30%) and Karoon (KAR) from 10.68% to 9.69% (-1.00%).
This Month's Analysis
One stock broke the month. The Star (SGR) copped a 4.20% jump in short interest — 6.84% to 11.03% — while the average short position across 659 names barely moved (-0.01%). That’s not a slow-burn valuation argument. That’s positioning for a headline.
First, the table-topper: the Ausgov Treasury Bond line (GSBW34) sits at 127.97% short (down from 132.54%, -4.57%). Treat it as plumbing — a technical/hedging position that can dwarf equities. On the equity side, the top 10 is a familiar mix of crowded commodities and a few consumer pressure points: - BOE (18.96%, +1.57%) remains the most shorted equity. Boss is in the messy part of the story — ramping Honeymoon and progressing Alta Mesa — where timelines, costs and commissioning risk matter more than the long-term uranium narrative. (Company materials: http://www.bossenergy.com/images/documents/Dec24-Quarterly-Results-Presentation.pdf) - PDN (15.92%, +0.55%) stays heavily shorted. After corporate activity like the Fission Uranium acquisition (per company context), the market tends to test the integration/execution path hard. - SYR (13.19%, +0.31%) is still pinned near the top. The short interest says the market wants proof on economics and funding/operations before it pays up. - PLS (12.69%, -1.30%) is still a big short, just less crowded than last month. If you want the company’s framing, start with Pilbara’s quarterly update: https://1pls.irmau.com/site/pdf/3bba2523-52c7-4c38-bc03-b945945d9698/December-2025-quarterly-activities-report-advisory.pdf?Platform=ListPage - DMP (12.66%, +0.34%) and IEL (12.53%, +0.15%) remain liquid ways to express consumer and policy/rates risk. When yields stay high, the market gets ruthless on discretionary margins (DMP) and anything exposed to student flows and regulation (IEL). - MIN (12.21%, -0.34%) eased, but it’s still a double-digit short. The market is still leaning against the lithium/iron ore mix — just with less aggression than it had. - SGR (11.03%, +4.20%) is now back in the top 10 after one month of heavy selling. - DYL (10.80%, +0.13%) keeps uranium representation strong in the top bracket.
Daily Snapshots
Top Shorted Stocks This Month
Biggest Risers
Stocks with the largest increase in short interest this month.
Biggest Fallers
Stocks with the largest decrease in short interest this month.
Movers Analysis
The risers were where the tape spoke loudest. - SGR: 6.84% → 11.03% (+4.20%). This is the kind of move you see when institutions want protection ahead of a binary update — regulatory pressure, a balance-sheet question, or both. Shorts didn’t drift higher. They arrived. - DRO: 4.50% → 8.11% (+3.61%). That’s a serious lift for a $2.9B name. The simplest read is valuation policing: when expectations are priced for clean contract cadence, any timing slip can be enough to attract a short book. (DRO report: https://www.droneshield.com/s/2025-3q-9acb.pdf) - LOT: 3.35% → 5.10% (+1.75%). Uranium developers don’t get a free pass. Shorts are still trading the theme, not just sitting on legacy positions. - BOE: 17.39% → 18.96% (+1.57%). More fuel on an already crowded name — a sign the market is still focused on ramp-up risk. - BGL: 5.61% → 7.11% (+1.50%). A meaningful lift that fits the broader pattern: shorts are happy to lean into smaller-cap materials where financing and execution can turn quickly. The fallers looked like position management rather than a wholesale change of mind: - PLS: 14.00% → 12.69% (-1.30%). Covering in a well-worn bearish trade. When a short gets crowded, the next risk is a squeeze on any ‘less bad’ update. - KAR: 10.68% → 9.69% (-1.00%). Oil shorts can get punished fast on price spikes and operational updates; trimming here reads like risk control. (KAR update: https://www.karoonenergy.com.au/wp-content/uploads/260127-2025-fourth-quarter-results.pdf) - LRS: 1.80% → 0.37% (-1.43%) and MSB: 2.82% → 1.71% (-1.12%) were smaller, cleaner covers — the kind you see when conviction fades or capital gets redeployed.
Industry Trends
Two clusters mattered. Uranium is crowded — and still getting more crowded. BOE (18.96%), PDN (15.92%), DYL (10.80%) are all in the top 10, and LOT climbed to 5.10%. The market isn’t arguing about nuclear power in 2040. It’s arguing about delivery dates, capex discipline and whether equity prices got ahead of what mines can actually ship. Consumer Services is where the stress is showing up in the short data. SGR’s jump was the month’s biggest move, while DMP (12.66%) and IEL (12.53%) stayed elevated. High rates don’t need to break the economy to do damage — they just have to keep pressure on spending and confidence long enough for earnings downgrades to land.
Outlook
Watch one thing next month: whether SGR short interest keeps climbing from 11.03% or stalls. If it keeps rising, the market is leaning into a specific catalyst; if it stalls, the trade is already crowded and the next surprise risk flips to a squeeze.
Frequently Asked Questions
Why did The Star (SGR) short interest jump so much in January 2025?
SGR short interest rose from 6.84% to 11.03% (+4.20%) in a month where the overall market’s average change was -0.01%, which points to traders putting on protection ahead of a specific negative catalyst rather than a gradual valuation view.
Why is Boss Energy (BOE) the most shorted ASX stock in the list?
BOE is the most shorted equity name at 18.96% (up from 17.39%, +1.57%). The short case typically targets ramp-up and execution risk at Honeymoon and progress at Alta Mesa, where delays or cost blowouts can hit expectations quickly.
Why is the Australian Government bond (GSBW34) shorted at 127.97%?
GSBW34’s 127.97% short position is generally technical positioning used by dealers to hedge and facilitate bond market activity, rather than a directional bet on an ASX company.
Does the fall in Pilbara Minerals (PLS) short interest mean lithium has bottomed?
No. PLS short interest fell from 14.00% to 12.69% (-1.30%), which can simply be profit-taking or risk reduction in a crowded trade, not proof of a lithium price-cycle turn.
Why did DroneShield (DRO) short interest rise to 8.11%?
DRO short interest increased from 4.50% to 8.11% (+3.61%). That size of move typically reflects expectations and valuation pressure in a high-profile stock, where any contract timing or margin disappointment can attract short sellers.
Data sourced from ASIC short position reports (T+4 delayed). This report is for informational purposes only and does not constitute financial advice. Short selling data may not reflect real-time market conditions.