According to ShortSqueeze.com, 277,600 shares of HYBR have been shorted. This is a 27.11% increase over the previous number of reported shorted shares and a 588% increase over the figure reported on February 15, 2008.
For those who are not familiar with shorting, it is the opposite of buying. Instead of buying and then selling at a later date, a trader sells shares he doesn’t have and then later on buys them back from the broker. This puts him in a risky situation, however, since a substantial material event from the company would attract great buying pressure and spike the price per share, causing him to lose on the trade. In this situation, he would feel pressured to cover his shares, further strengthening the bull run.
As you can see, a very large short position (such as the one in HYBR) could create a massive run if covered. This is what is commonly referred to as a “Short Squeeze”. The 30-day volume average for HYBR is 143,350, so just imagine if all HYBR’s shorted shares were bought back on the same day in addition to substantial buying pressure! This is a very possible situation, as any significant news could ignite the explosion.
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