{"url":"https://www.zerohedge.com/markets/avis-soars-historic-squeeze-whos-next-here-are-most-shorted-stocks-right-now","title":"Avis Short Squeeze Highlights Next Targets","domain":"zerohedge.com","imageUrl":"https://images.pexels.com/photos/21704841/pexels-photo-21704841.jpeg?auto=compress&cs=tinysrgb&h=650&w=940","pexelsSearchTerm":"short","category":"Business","language":"en","slug":"91b7486e","id":"91b7486e-f182-44d5-a09c-1cb08212fb15","description":"Avis Squeeze: Avis Budget Group (CAR) stock surges in historic short squeeze amid high short interest and low float.","summary":"## TL;DR\n- **Avis Squeeze:** Avis Budget Group (CAR) stock surges in historic short squeeze amid high short interest and low float.\n- **86% Short Float:** Ortex data shows 86.2% of free float shorted as of Monday, near March peak of 89.3%.[[1]](https://www.investing.com/news/stock-market-news/avis-budget-shares-touch-record-high-as-short-squeeze-hammers-bearish-bets-4626661)[[2]](https://www.reuters.com/business/autos-transportation/avis-budget-shares-touch-record-high-short-squeeze-hammers-bearish-bets-2026-04-21)\n- **Squeeze Candidates:** Article lists most shorted stocks now as potential next targets for similar squeezes.\n\n## The story at a glance\nZero Hedge reports on Avis Budget Group's (CAR) explosive stock rally driven by a short squeeze, despite years of declining revenue and negative free cash flow. Hedge funds SRS Investment Management and Pentwater Capital Management hold over 71% of shares outright and more than 100% economically including swaps, shrinking the float and pressuring shorts. This is reported now as CAR hit record highs Tuesday after quadrupling in April, with shorts losing over $4 billion this month.[[3]](https://www.zerohedge.com/markets/avis-soars-historic-squeeze-whos-next-here-are-most-shorted-stocks-right-now)[[1]](https://www.investing.com/news/stock-market-news/avis-budget-shares-touch-record-high-as-short-squeeze-hammers-bearish-bets-4626661)\n\n## Key points\n- CAR stock up over 500% in 30 days, hitting record high around $714 Tuesday after 17% gain, with trading halts.\n- Short interest at 86.2% of free float per Ortex (Monday), 54-62% per Nasdaq/S3; 9 million shares short as of March 31 vs. ~10-15 million tradeable float.[[4]](https://finance.yahoo.com/markets/stocks/articles/avis-budget-stock-surges-short-121223658.html)[[5]](https://www.marketbeat.com/short-interest)\n- SRS (17.4M shares) and Pentwater (7.8M shares + options) control 71% outstanding shares (35M total); swaps push to 108% economic interest.[[6]](https://www.msn.com/en-us/money/topstocks/avis-short-squeeze-why-a-stock-offering-and-regulatory-scrutiny-could-be-next/ar-AA21pntY?ocid=finance-verthp-feeds)\n- Shorts lost $4.09B in April, $1.01B Monday alone; Barclays calls it technical supply/demand mismatch.[[7]](https://www.marketscreener.com/news/avis-budget-shares-touch-record-high-as-short-squeeze-hammers-bearish-bets-ce7f59dbda8bf32d)\n- Compared to GameStop 2021 and Volkswagen 2008 squeezes due to low float and high shorts.\n- Article highlights most shorted stocks right now as \"who's next\" candidates, though specific names not visible in paywall teaser.\n\n## Details and context\nAvis has struggled fundamentally as a \"revenue-declining, cash-incinerating machine\" with no positive free cash flow quarters in years, making it a prime short target earlier.[[3]](https://www.zerohedge.com/markets/avis-soars-historic-squeeze-whos-next-here-are-most-shorted-stocks-right-now) Pentwater's recent stake increase and options exercise further reduced float, triggering covering as price rose from ~$100 in late March.\n\nConcentrated ownership locks up shares: brokers hedge swaps by holding stock, leaving little for shorts to borrow. Days-to-cover ~7 at normal volume, but squeeze amplifies buying pressure.\n\nRecent data shows CAR atop large-cap most-shorted lists at 25-88% short interest depending on metric, ahead of IonQ, EchoStar, but squeeze risk tied to low availability (0.35%).[[8]](https://app.ortex.com/short-interest)[[9]](https://seekingalpha.com/news/4576292-most-shorted-large-cap-stocks-as-of-mid-april)\n\n## Key quotes\n\"We believe the parabolic increase of CAR's share price the past month has been driven almost exclusively by technical factors that have created a wide supply/demand mismatch on the shares with short-sellers facing a sharp squeeze.\" – Barclays analysts.[[7]](https://www.marketscreener.com/news/avis-budget-shares-touch-record-high-as-short-squeeze-hammers-bearish-bets-ce7f59dbda8bf32d)\n\n## Why it matters\nShort squeezes like this expose risks of crowded bearish bets on low-float names, inflicting massive losses even on weak fundamentals. Investors face extreme volatility; shorts may keep covering, but longs risk reversal if owners sell or company dilutes via offering. Watch short interest updates from Ortex/S3, CAR filings on ownership changes, and volume for signs of peak squeeze.\n\n## What changed\nBefore late March, CAR traded ~$100-143 with ~50% short interest on poor fundamentals and ample float perception. Now, post-Pentwater stake build and squeeze, shares hit $714 record high with shorts covering amid 86% free float shorted and effective 100%+ ownership lockup. Shift accelerated early April after proxy filings revealed concentrated stakes.\n\n## FAQ\nQ: Why did Avis Budget stock squeeze despite weak fundamentals?\nA: High short interest (86% free float) met tiny float from SRS/Pentwater owning 71% shares + swaps (108% economic), forcing covers as price rose; no positive FCF in years made it shortable before.[[1]](https://www.investing.com/news/stock-market-news/avis-budget-shares-touch-record-high-as-short-squeeze-hammers-bearish-bets-4626661)\n\nQ: How much have shorts lost in the Avis squeeze?\nA: $4.09 billion total in April, with $1.01 billion on Monday alone as shares jumped 23%.[[7]](https://www.marketscreener.com/news/avis-budget-shares-touch-record-high-as-short-squeeze-hammers-bearish-bets-ce7f59dbda8bf32d)\n\nQ: What makes Avis vulnerable to short squeeze?\nA: 9M shares short vs. 10-15M tradeable float, days-to-cover 7, brokers hedging swaps hold stock, leaving 0.35% availability per Ortex.[[8]](https://app.ortex.com/short-interest)\n\nQ: Who owns most of Avis Budget shares?\nA: SRS Investment Management (17.4M shares) and Pentwater Capital (7.8M + options), over 71% outstanding; swaps add more exposure.[[1]](https://www.investing.com/news/stock-market-news/avis-budget-shares-touch-record-high-as-short-squeeze-hammers-bearish-bets-4626661)\n\n\n\n\n\n\n\n[[3]](https://www.zerohedge.com/markets/avis-soars-historic-squeeze-whos-next-here-are-most-shorted-stocks-right-now)","hashtags":["#short","#squeeze","#avisbudget","#car","#stock","#markets"],"sources":[{"url":"https://www.zerohedge.com/markets/avis-soars-historic-squeeze-whos-next-here-are-most-shorted-stocks-right-now","title":"Original article"},{"url":"https://www.investing.com/news/stock-market-news/avis-budget-shares-touch-record-high-as-short-squeeze-hammers-bearish-bets-4626661","title":""},{"url":"https://www.reuters.com/business/autos-transportation/avis-budget-shares-touch-record-high-short-squeeze-hammers-bearish-bets-2026-04-21","title":""},{"url":"https://finance.yahoo.com/markets/stocks/articles/avis-budget-stock-surges-short-121223658.html","title":""},{"url":"https://www.marketbeat.com/short-interest","title":""},{"url":"https://www.msn.com/en-us/money/topstocks/avis-short-squeeze-why-a-stock-offering-and-regulatory-scrutiny-could-be-next/ar-AA21pntY?ocid=finance-verthp-feeds","title":""},{"url":"https://www.marketscreener.com/news/avis-budget-shares-touch-record-high-as-short-squeeze-hammers-bearish-bets-ce7f59dbda8bf32d","title":""},{"url":"https://app.ortex.com/short-interest","title":""},{"url":"https://seekingalpha.com/news/4576292-most-shorted-large-cap-stocks-as-of-mid-april","title":""}],"viewCount":2,"publishedAt":"2026-04-22T13:09:03.810Z","createdAt":"2026-04-22T13:09:03.810Z","articlePublishedAt":"2026-04-21T19:42:26.000Z"}