Upstart's 241st-Ranked 437M Dollar Drop Amid 437 Rally 2186 Shorted Float Fuels Short Squeeze Fears

On September 3, 2025, Upstart (UPST) fell 6.81% with a trading volume of $0.43 billion, ranking 241st in market activity. The stock’s 15-minute chart displayed conflicting KDJ signals—a Golden Cross and Death Cross—indicating mixed momentum. Despite this, Upstart has surged 43.7% over three months, outperforming its industry, driven by a 102% year-over-year revenue increase and 159% growth in loan originations. Expansion into Auto and Home lending segments has further bolstered its performance, though the stock remains overvalued relative to peers.

Short interest data as of July 31 revealed 17.53 million shares sold short, representing 21.86% of the float, with a short interest ratio of 3.0. This suggests moderate bearish sentiment, though short positions declined 5.8% in July, signaling shifting investor perceptions. Institutional investors, including Wolverine Trading and Jane Street Group, reported short positions, per SEC filings.

Short interest decreased from 18.61 million to 17.53 million shares in July, reflecting reduced pessimism. Upstart’s short interest ratio of 3.0 places it in a neutral zone, while its 21.86% shorted float compares to peers like Affirm (6.09%) and Lemonade (30.13%). A short squeeze remains a risk if the stock rallies, forcing short sellers to cover positions.

As of July 31, 17,530,000 shares of Upstart were sold short, a 5.8% decline from the prior month. This reduction in short volume suggests easing bearish pressure. The short interest ratio of 3.0 indicates moderate pessimism, while the 21.86% shorted float highlights significant exposure to potential price swings. Institutional short positions, including entities like Wolverine Trading and Jane Street Group, were disclosed in recent filings.