Stock Move upon Earnings causes Market-to-Market Losses on Short Position

Bachem (BANB SW), a Swiss specialty chemicals company, rose 30% last week following its earnings report.

The stock had a notable short interest position, though it wasn’t heavily crowded—short interest increased from 10% to 12% in early July.

As the stock price surged, the squeeze score jumped from a crowding score of 65 to 100, and currently sits at 85.

Since then, the stock has pulled back and short interest has declined, reducing immediate squeeze risk. However, a renewed rally could reignite squeeze dynamics.

This pattern—sharp gains followed by elevated squeeze risk—is common in stocks experiencing outsized upside moves.

Cumulative P&L on the short side incurred significant mark-to-market losses.

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