Artem Voloskovets
⬤ HIMS stock is dealing with seriously elevated short interest right now. We're talking about roughly 81 million shares sold short - about 41 percent of all shares outstanding. What's interesting is that bears have piled in while the share price hasn't dropped nearly as much as you'd expect. The chart tracks short interest against HIMS share price , showing a huge disconnect where short sellers are betting big on a decline even though the stock's holding up.
⬤ Looking back, every time we've seen big short interest spikes relative to price, HIMS has often rallied hard afterward. Between late 2024 and early 2025, short interest ballooned from around 30-60 million shares while price stayed above key support. What happened next? Mini short squeezes that sent the stock soaring 100 to 300 percent over just weeks as shorts scrambled to cover. The current setup looks remarkably similar - shorts are loading up while price refuses to budge, which could mean serious pressure if momentum flips.
⬤ The chart reveals that short interest tends to peak when price sits near previous resistance zones. Those peaks typically lined up with local bottoms that led to substantial rallies. Here's the thing: short interest just hit all-time highs without the stock crashing, suggesting much bearish pressure might already be baked in. "The magnitude of short interest relative to float and share price divergence matters because it can amplify volatility," creating conditions where covering happens fast and drives sharp moves.
⬤ When you've got this much short positioning against the float, volatility can explode if sentiment shifts. Heavy shorts can fuel rapid price spikes when traders cover en masse, tightening supply and pushing prices higher. Whether we see another classic short squeeze depends on market conditions, but HIMS's current technical setup definitely stands out.
Artem Voloskovets
