“Stock price manipulation”: In April 2023, CEO Tom Siebel denounced an activist short thesis as “a very creative, very successful attempt at stock price manipulation,” claiming there was “not a word of truth” and that the firm profited over $100 million. Shares fell 26% that day — its steepest single-session drop since IPO.

Battleground Framework: S3 defines battleground stocks as those with long-to-short ratios between 0.65x and 1.35x — where capital is split and conviction runs high on both sides. C3.ai has remained in or near that range for over 18 months, with a 0.96x ratio as of July 21, 2025.

July = Battleground Market: Month-to-date in July, battleground stocks have posted a median return of 11%, vs. 3% for long-skewed and 5% for short-skewed US equities, underscoring the opportunity in contested names.

Positioning shifts: C3.ai’s long-to-short ratio began 2023 above 2.4x, signaling long dominance. But as activist short campaigns escalated the ratio compressed. By April 2023, it hovered near 1.0x as shorts ramped up and longs trimmed exposure.

Long-to-Short Ratio tells the story: Though the ratio dipped below 1.0x in 2023, it didn’t stay there. It rebounded through 2024 — peaking at 1.39x in December. In 2025, short sellers have increased positions, pulling the ratio back below parity.

Bulls vs. bears — in public: Since early 2023, short sellers have questioned C3.ai’s accounting and fundamentals. Siebel pushed back, and a May 2023 audit cleared the firm. Even after an earnings-driven rally, the capital split held, keeping the stock firmly in battleground territory.

C3.ai became a battleground in early 2023. From January to April, its stock price surged from $10.80 to over $30 on AI enthusiasm, pushing active long interest to a Q1 peak of $533 million. At the same time, short sellers built aggressively. In February, one activist accused the company of “inflating its revenues” and flagged a “CFO revolving door.” Another short seller followed with a letter to C3.ai’s auditor alleging “aggressive accounting” and “deteriorating fundamentals.”

The stock plunged 26% on April 4 — its steepest one-day drop since IPO. Siebel responded by calling the short thesis “a very creative, very successful attempt at stock price manipulation.” A board-led audit later cleared the firm of wrongdoing. But the structural shift had already occurred: by April 4, C3.ai’s long-to-short ratio had dropped to 0.67x. That spring, short interest peaked at 49.5% of float.

The stock remained volatile through late 2023 and into 2024. It climbed to $46.37 in June 2023 during a surge of generative AI enthusiasm — part of a broader meme-stock revival that drew renewed interest from retail traders. But as execution risks reemerged, sentiment turned. By June 2025, long interest had fallen 30% year-to-date, while short interest dipped just 7% and the stock declined 18% — reflecting increased short exposure as institutional longs pulled back.

Since May 2025, as the broader market rallied, short interest in C3.ai has risen 50%, while long interest is up just 3%, even as the share price gained 30%. As of July 21, 2025, C3.ai trades at $28.33, with $696 million in long interest and $724 million short. Its long-to-short ratio stands at 0.96x, and short interest equals 21% of float — confirming that the battleground remains active.

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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.

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