The media has been pushing the narrative that the recent surge in short selling is a bearish signal, but that is only looking at half the picture. Active long holdings have risen an even greater amount in 2026.

Total Active Short Interest has increased by $81 billion in 2026, from $2.42 trillion to $2.50 trillion.

Total Active Long Holdings has increased by $271 billion in 2026, from $14.29 trillion to $14.56 trillion.

The increase in both Active Long and Short positions is interconnected – Active Investors (hedge funds, family offices, sovereign wealth funds, etc.) are increasing their market exposure, and in order to get increased financing from their brokers to support this increase they must increase balances on both the Long & Short side.

Using S3’s short data we see that domestic short exposure increased by $90 billion in 2026, a 4.3% increase in total short exposure.

The largest increases in short exposure were in Financial Securities (ETFs & Funds), Materials and Information Technology.

The largest decreases in short exposure were in Financials, Communication Services and Consumer Discretionary.

Using S3’s long MAP data we see that domestic long exposure increased by $408 billion in 2026, a 2.5% increase in total long exposure.

The largest increases in long exposure were in Industrials, Materials, and Energy.

The largest decreases in long exposure were in Health Care, Information Technology and Financials.

The Active Long-Short ratio has decreased slightly, by -0.13, but continues to be around the 8-1 level (short exposure is 13% of long exposure). The long-short ratio for hedge funds is approximately 1.5-1.

Want to know more? Access this data in real time using S3’s BLACK APP & BLACK MAP

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.