EquiLend launches Short Squeeze Score
23 April 2025 US
Image: Thiago/stock.adobe.com
EquiLend has launched its Short Squeeze Score, a trading signal designed to provide an early warning of potential short squeezes.
The Short Squeeze Score provides a risk signal derived from three critical dimensions: market dynamics, securities finance data, and social sentiment.
According to the data and technology firm, the signal enables traders, portfolio managers, and risk teams to mitigate risk in their portfolios by identifying the likelihood that a given security may be vulnerable to a short squeeze.
A short squeeze occurs when a heavily shorted security experiences a rapid price increase, forcing short sellers to cover positions and accelerating upward price pressure.
Nancy Allen, head of Data & Analytics Solutions at EquiLend, says: “With today's market volatility and uncertainty, the ability to proactively identify the risk of a short squeeze is more valuable than ever.
“Built on our transaction-based securities finance data, our score brings greater transparency to the global short sale market — and we’re excited to share it.”
The Short Squeeze Score is available across more than 50,000 unique equities in EquiLend's suite of Data & Analytics Solutions, including DataLend, Orbisa and the Orbisa app on Bloomberg.
By combining these datasets, the Short Squeeze Score not only reflects current conditions but anticipates potential emerging risks for market participants, says EquiLend.
In back-testing, the score has shown “strong historical correlation” with prior squeeze events, such as the January 2021 GameStop short squeeze.
“This launch underscores our dedication to providing DataLend and Orbisa customers with data-driven insights that enable them to anticipate market trends, manage risk and drive innovation in their decision process,” says Nick Delikaris, chief product officer at EquiLend.
The Short Squeeze Score provides a risk signal derived from three critical dimensions: market dynamics, securities finance data, and social sentiment.
According to the data and technology firm, the signal enables traders, portfolio managers, and risk teams to mitigate risk in their portfolios by identifying the likelihood that a given security may be vulnerable to a short squeeze.
A short squeeze occurs when a heavily shorted security experiences a rapid price increase, forcing short sellers to cover positions and accelerating upward price pressure.
Nancy Allen, head of Data & Analytics Solutions at EquiLend, says: “With today's market volatility and uncertainty, the ability to proactively identify the risk of a short squeeze is more valuable than ever.
“Built on our transaction-based securities finance data, our score brings greater transparency to the global short sale market — and we’re excited to share it.”
The Short Squeeze Score is available across more than 50,000 unique equities in EquiLend's suite of Data & Analytics Solutions, including DataLend, Orbisa and the Orbisa app on Bloomberg.
By combining these datasets, the Short Squeeze Score not only reflects current conditions but anticipates potential emerging risks for market participants, says EquiLend.
In back-testing, the score has shown “strong historical correlation” with prior squeeze events, such as the January 2021 GameStop short squeeze.
“This launch underscores our dedication to providing DataLend and Orbisa customers with data-driven insights that enable them to anticipate market trends, manage risk and drive innovation in their decision process,” says Nick Delikaris, chief product officer at EquiLend.
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