On S3’s Podcast RISK AND RETURN last week, we discussed how Battleground Stocks have become the epicenter of financial fireworks—where emotions run high and short-term gains can explode with MEME-like velocity. With passive strategies swallowing vast portions of the market, the available float for trading has shrunk dramatically, transforming liquidity into a volatile, high-stakes game.

We’ve entered a new phase where active investors go toe-to-toe with short sellers in daily clashes, each side armed with conviction and capital. In this charged atmosphere, even a single dollar of uncommitted capital—dry powder waiting in the wings—can unleash a stampede, tipping the balance in a heartbeat and generating jaw-dropping price swings within a single session.

It’s not just investing—it’s a tactical war zone where sentiment and strategy collide

Large Long Institutional Holdings

Passive Institutions (Mutual funds, ETF providers, Pension Funds, etc.) are long $656 million and Active Institutions (Hedge Funds) are long over $595 million.

Large Short Institutional Holdings

Short Interest is $534 million, 48% of KSS’s Float.

KSS is a classic Battleground Stock

Passive institutions generally hold shares long and do not liquidate unless there is an index rebalancing. But Active Long and Short Holders will buy and sell according to market conditions.

One to One ratio of Active Longs to Shorts

With equal amounts of Active Long and Short positions, KSS is a battleground stock with ample “dry powder” on both sides of the ledger that can ignite if its stock price moves dramatically in either direction.

Using our MAP long data, we see that KSS is a Crowded Long with over $1 billion of total Active and Passive Institutional holdings; high percentage of Institutional Holdings versus its Float; and large amount of Hedge Fund holders (452 Hedge Funds are long KSS). Due to its recent surge in daily trading volumes, its 30 Day to Long Liquidation ratio is slightly below the U.S. average. These factors give it a 71/100 Long Crowded score.

On the short side our Black App data shows us that KSS has over $500 million of short interest, high Short Interest % Float, High 30 Days to Cover and higher than average stock borrow fees. These factors give it a 87.5/100 Short Crowded Score. KSS’s recent rally has generated mark-to-market losses on the short side, giving it a 100/100 Squeeze Score.

Both KSS’s Long and Short side are crowded, but even more important is the fact that there are virtually equal amounts of stock exposure on both the long and short side. If KSS’s stock price moves upwards significantly we will be seeing short covering helping to drive up its stock price along with long buying. If KSS’s stock price moves downwards significantly we will be seeing long selling helping to drive down its stock price along with increased short selling.

With both the long and short sides equally balanced there is inherently more volatility in the stock, there is a greater chance of seeing sudden and severe spikes in stock prices much like the sudden drop in a see-saw when one side jumps off suddenly.

Today’s +38% stock price move is made up of long buying and short buys-to-cover as some shorts get squeezed out of their positions after incurring -$260 million of intra-day mark-to-market losses. . Since mid-May we’ve seen 7.3 million shares of KSS short covering as its stock price rose +11%. Today’s price move will accelerate short covering and because KSS is a Battleground stock we saw a much more aggressive move upwards than if it weas not a Battleground stock.

Want to know more? Access this data in real time using S3’s 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.