Balanced Long and Short, Highly Volatile, Crowded, Had Huge Run-Up

IONQ is a crowded short, with real-time short interest data indicating approximately 14% of its short interest as a percentage of float. The stock has no earnings and has gained over 250% in the past two years, trading at a lofty price-to-sales ratio—making it a compelling short candidate based on short-selling sentiment data.

With long active interest nearly matching short active interest, and a Long/Short ratio of 0.9, the stock qualifies as one of S3’s Battleground Stocks—a designation reflecting balanced conviction, short squeeze risk, and elevated volatility.

IONQ has remained in the Battleground category for most of the past year. However, last winter, short interest analytics showed a sharp increase in bearish positions while long interest stayed flat, dropping the Long/Short ratio below the critical 0.65 threshold.

IONQ also has high short squeeze risk, a chronic issue in this stock which squeezed twice in the past year with rising stock price and falling short interest. Investors following the squeeze risk would have been profitable; They should be prepared for upside volatility in the stock.

Currently trading near its 52-week high, IONQ is drawing increased short-selling interest, with short interest data signaling renewed bearish positioning. It shows a positive correlation with short positions within a reversal strategy framework, indicating that short sellers may be strategically entering near local price peaks—a sign of crowded shorts data in action.

Long and short positions exhibit negative correlation, highlighting synchronized trading behavior where both sides are actively managing exposure—a hallmark of crowded trade sentiment.

IONQ’s crowded short positioning and strong recent returns have driven its Short Squeeze Score—a proprietary S3 metric—above 70, indicating elevated short squeeze risk. The Short Squeeze Score peaked at 100 in April. Shortly after, short interest data showed a decline during a rising market, signaling a short squeeze event—similar to a pattern observed last year.

Despite 500% cumulative returns and persistent valuation concerns, analyst sentiment remains bullish, with few sell recommendations and a high concentration of buy ratings—suggesting herd risk indicators may be in play.

Like many Battleground Stocks, IONQ shows elevated levels of both realized and implied volatility, underscoring its short squeeze risk, crowded trade sentiment, and exposure to hedge fund positioning shifts.

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The information herein (some of which has been obtained from third party sources without verification) is believed by S3 Partners, LLC (“S3 Partners”) to be reliable and accurate. Neither S3 Partners nor any of its affiliates makes any representation as to the accuracy or completeness of the information herein or accepts liability arising from its use. Prior to making any decisions based on the information herein, you should determine, without reliance upon S3 Partners, the economic risks, and merits, as well as the legal, tax, accounting, and investment consequences, of such decisions.