Avis Short Squeeze Highlights Next Targets

TL;DR

Avis Squeeze: Avis Budget Group (CAR) stock surges in historic short squeeze amid high short interest and low float.
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)
Squeeze Candidates: Article lists most shorted stocks now as potential next targets for similar squeezes.

The story at a glance

Zero 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)

Key points

CAR stock up over 500% in 30 days, hitting record high around $714 Tuesday after 17% gain, with trading halts.
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)
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)
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)
Compared to GameStop 2021 and Volkswagen 2008 squeezes due to low float and high shorts.
Article highlights most shorted stocks right now as "who's next" candidates, though specific names not visible in paywall teaser.

Details and context

Avis 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.

Concentrated 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.

Recent 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)

Key quotes

"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)

Why it matters

Short 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.

What changed

Before 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.

FAQ

Q: Why did Avis Budget stock squeeze despite weak fundamentals?

A: 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)

Q: How much have shorts lost in the Avis squeeze?

A: $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)

Q: What makes Avis vulnerable to short squeeze?

A: 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)

Q: Who owns most of Avis Budget shares?

A: 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)

[[3]](https://www.zerohedge.com/markets/avis-soars-historic-squeeze-whos-next-here-are-most-shorted-stocks-right-now)