When strategizing for siege warfare, the Greeks created a new machine to dominate and control the battlefield. The device was meant to kata (downward) pallō (hurl) large objects to achieve victory. While centuries have passed, short sellers have found their own Katapult – and it is primed for maximum payload.
Katapult Holdings (NASDAQ: KPLT) regularly experiences an even volley between retail traders and corporate money makers. Nearly half of all daily volume is conducted within dark pools. Anyone interested in diving deeper into the dark pools will see approximately half of all KPLT trades are by short-sellers. According to Fintel, yesterday was a perfect example as 1,127,137 shares occurred within dark pools and of those 579,967 million were shorts.
Maintenance Faulters, Danger Looms
Shorts have now found themselves in a, particularly vulnerable spot. Allowing maintenance to get out of hand, shorts have found their Katapult investment is about to backfire into a painful failure to deliver threshold. Approaching 2.5 million shares the market can only offer approximately 1 Million shares for shorts to load up on per Ortex.
Utilization has surpassed 97% and costs to borrow hovers around 30%. The borrow fee rested at 24%. Total short shares exceed 12.8 million.
If retailers obtain the upperhand, there will be no retreat for shorts and they will be completely at the mercy of the same warriors who staged campaigns against Gamestop (NYSE: GME) and AMC (NYSE: