Short interest volatility
May's Short Interest Reports Reveal Divergent Trends for Several Companies
Anonymous
Key Points
1
Wilmar International’s short interest fell from 41,820 shares (May 14) to 2,312 shares (May 29), with the report showing “Approximately 0.0%” of shares sold short and a short-interest ratio of “0.0 days.” In the same snapshot period, WLMIY traded up to $27.12, with 9,723 shares changing hands versus an average volume of 40,959.
2
WCF Bancorp’s short interest dropped from 234 shares (May 14) to 34 shares (May 29), with the short-interest ratio reported as “0.0 days” and “Approximately 0.0%” of shares sold short. The stock moved to $5.97 on 850 shares traded (vs. average volume of 3,031).
3
For Virtus KAR Mid-Cap ETF (KMID), days-to-cover was reported at 0.1 days (502 shares short as of May 29, down from 2,557 on May 14). The listing also noted sizable recent buying activity by large holders—e.g., Allegheny Financial Group increased its position by 125.8% in Q3 to 158,500 shares after buying 88,317 additional shares, and Citadel Advisors LLC acquired a new position worth about $504,000 (Q3).
4
Medirom Healthcare Technologies’ short interest rose from 62,840 shares (May 14) to 338,625 shares (May 29), up 438.9%, with about 2.0% of the stock reported as sold short and a days-to-cover ratio of 0.2 days. Separately, the Weiss Ratings downgrade from “sell (d+)” to “sell (d)” was dated May 28.
5
AEye’s short interest fell from 3,787 shares (May 14) to 736 shares (May 29), down 80.6%, with a short-interest ratio of 0.1 days. The stock was extremely thinly traded in the snapshot reported—LIDRW last traded at $0.03 with 3,318 shares traded versus an average volume of 29,788—and its 1-year range was cited as $0.02 to $0.58.
Medirom Healthcare Technologies saw its short interest explode by 438.9% in May, jumping from 62,840 shares on May 14 to 338,625 shares by May 29, according to Ticker Report. The surge came just one day after Weiss Ratings downgraded the Tokyo-based health services company from "sell (d+)" to "sell (d)" on May 28 — a one-two punch that signaled deep bearish sentiment heading into the company's annual shareholder meeting.
The Medirom spike stood out sharply against a broader trend of falling short interest across several small-cap and OTC tickers in May. Wilmar International, WCF Bancorp, the Virtus KAR Mid-Cap ETF, and AEye all saw short interest fall — some by more than 80% — over the same two-week snapshot period.
Medirom's Perfect Storm: Downgrade, Filing Delay, and AGM
Medirom's short interest surge did not happen in a vacuum. On April 30, 2026, the company had already announced it could not file its Form 20-F annual report with the SEC on time, according to Simply Wall St. That filing delay set the stage for short sellers to pile in ahead of the May 29 shareholder meeting.
Then on May 28, Weiss Ratings issued its formal downgrade. Hours later, Medirom released its Q1 2026 earnings, highlighting expansion of its "Re.Ra.Ku" massage franchise in Tokyo. Short interest settled at 338,625 shares — about 2.0% of the float — with a days-to-cover ratio of just 0.2 days. That low days-to-cover figure means short sellers could exit their positions in under half a trading day, signaling they were moving fast and aggressively.
Wilmar's Short Sellers Flee After Indonesian Probe Breaks
While Medirom shorts were piling in, Wilmar International's short sellers were running for the exits. Short interest in WLMIY plunged from 41,820 shares on May 14 to just 2,312 shares by May 29 — a 94.5% drop. The likely trigger: on May 26, Indonesia's Finance Minister announced a formal investigation into ten crude palm oil exporters, including alleged price mark-ups of as much as 50% on shipments routed through Singapore, according to The Business Times.
Wilmar's Singapore-listed shares (F34) fell 10.5% in early trade on May 28 after the probe was reported. Short sellers likely locked in profits during that drop and covered their positions. Wilmar responded cautiously, saying: "If and when we receive official notification that Wilmar is under investigation... we will update the market accordingly," according to Dow Jones Newswires. By the May 29 snapshot, WLMIY traded at $27.12 on just 9,723 shares, far below its average daily volume of 40,959.
WCF Bancorp and KMID See Short Interest Near Zero
Two smaller tickers posted similarly dramatic short interest declines. WCF Bancorp's short interest fell from 234 shares to just 34 shares — an 85.5% drop — with a days-to-cover ratio of 0.0 days. The stock traded at $5.97 on only 850 shares, versus an average daily volume of 3,031. At these levels, the short interest is essentially a rounding error.
The Virtus KAR Mid-Cap ETF (KMID) saw short interest drop from 2,557 shares to 502 shares, with days-to-cover at 0.1. The fund also attracted fresh institutional money in Q3. Allegheny Financial Group increased its position by 125.8%, adding 88,317 shares to reach 158,500 total. Citadel Advisors LLC opened a brand new position worth about $504,000, according to Morningstar.
AEye Warrants Drop 80% in Short Interest, But Stock Tells a Darker Story
AEye's LIDRW warrants saw short interest fall from 3,787 shares to 736 shares — an 80.6% decline — with a days-to-cover ratio of 0.1 days. On the surface, that looks bullish. But the stock tells a different story. LIDRW last traded at just $0.03, with only 3,318 shares changing hands versus an average daily volume of 29,788. Its one-year range stretches from $0.02 to $0.58.
The decline in short interest is almost certainly a result of thin trading and low liquidity, not a change in investor confidence. AEye reported a 60% revenue increase in Q1 2026 but also posted a net loss of $8.3 million, according to AEye Investor Relations. With 21 commercial customers and a near-zero share price, the LiDAR maker — which builds laser-based sensing systems for autonomous vehicles — remains in distressed territory as the sector pushes toward consolidation.
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