Short sellers have aggressively re-engaged in one of the original meme stocks, driving short interest sharply higher after news of shareholder dilution.

Short Demand builds post-dilution approval: Since the start of December, AMC short interest has risen from 45mm shares (9% float) to a multi-year high of 125mm shares (25% float), a +185% increase in shares shorted. Authorization to expand the share count removes uncertainty and re-opens the downside playbook.

Conviction: Short Notional exposure has expanded from ~$100M to ~$175M, indicating new short positions building, rather than profit taking.Active Long Interest now stands at $190M, resulting in a Long/Short Interest Ratio of ~1.1x, squarely in Battleground territory.

Short-term Risks: AMC stock borrow supply conditions have tightened considerably, with SI Utilization jumping from 40% to 90%, while indicative lendable availability has decreased from over 60M to under 15M shares. This leaves marginal shorts increasingly exposed to recall risk or volatilitydriven covering.

Sequel: With dilution risk understood and embedded into positioning, further downside increasingly depends on fresh lendable supply, not just negative headlines. This leaves AMC vulnerable to reflexive upside if issuance pauses, volatility rises, or borrow conditions tighten further and force defensive covering.

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