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This Month's Exclusive News
Avis Short Squeeze Shocked the Market: Are These 3 Stocks Next?Written by Dan Schmidt. First Published: 4/27/2026. 
Key Points
- A recent Avis Budget Group short squeeze, which sent shares from $100 to $700, illustrates how a captured float and high short interest can produce extreme price moves.
- True short squeezes are rare and require a combination of factors coming together to materialize.
- Groupon, Asana, and Beyond Meat each show elevated short interest above 30%, more than five days to cover, and near-term catalysts: the recipe to ignite a short squeeze
- Special Report: The Biggest IPO Ever: Claim Your Stake Today
Investors felt like it was 2021 all over again when shares of Avis Budget Group (NASDAQ: CAR) surged from $100 to $850 in just over three weeks. No company announcement or operational breakthrough caused the rally; it was a classic short squeeze driven by an artificially limited float and speculative buying.
The squeeze was orchestrated by a pair of hedge funds that effectively gained control of most of the tradable float. Through stock positions and swaps, Pentwater Capital and SRS Investment Management came to control more than 80% of the float in a stock that already had roughly 13% short interest. As a result, virtually no shares were available for shorts to cover, and the feedback loop sent the stock up more than 500%. Like most short squeezes, the trade quickly unwound, and CAR shares are back in the low $200s. The episode was a useful refresher on short-squeeze mechanics and could help set the stage for the next round of squeezes. 3 Stocks With High Short Interest That Could Squeeze NextA true short squeeze requires three elements: a high level of short interest, a lengthy days-to-cover period, and a catalyst that can ignite a rally. High short interest combined with more than five days to cover can create a difficult environment for short sellers to locate shares and close positions. When shorts scramble to cover while buyers pour in, the feedback loop that fuels a short squeeze can take hold. Here are three stocks that fit those criteria. Groupon: Clean Short Squeeze Setup With Upcoming Earnings CatalystOnline discount marketplace Groupon Inc. (NASDAQ: GRPN) is a frequent short-squeeze candidate because of volatile earnings and a long history of struggling to convert revenue into profit. Short sellers have generally been rewarded over the years, with GRPN shares losing more than 65% of their value over the last five years. Heavily shorted stocks can present brief trading opportunities, and Groupon currently has the classic short-squeeze setup many traders look for. GRPN has more than 50% of its float sold short—an increase of over five percentage points from the prior month. The stock entered the year with about 40% of its float sold short, so this marks an acceleration. Crucially, shorts would need roughly 11.3 days to cover at average trading volumes, leaving a lengthy window for a squeeze to develop. Beyond the high short interest and long days to cover, Groupon has a catalyst on the horizon: its Q1 2026 earnings report on May 6. An upside surprise could force additional short covering — the stock has already jumped more than 30% in the last month. Despite a recent pullback, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) both show growing buying momentum ahead of the earnings release. 
Asana: Founder Control Shrinks the Tradable SupplyAsana Inc. (NYSE: ASAN) is the work-management software platform co-founded by Dustin Moskovitz, one of Facebook’s original architects. The company has struggled to achieve sustained profitability over its history, but it recently reported back-to-back positive EPS figures in fiscal Q3 and Q4 2026. Asana also posted record revenue of $205.57 million in Q4 2026, representing more than 9% year-over-year growth. Sentiment may be shifting: the stock received a rare upgrade from the Royal Bank of Canada in early April, and the share price has trended higher in recent weeks. Nearly 35% of the float is sold short in ASAN, with about 4.2 days to cover. That combination is an intriguing setup, but Moskovitz’s large controlling stake further reduces the number of shares available for trading. He has also been a consistent buyer during downturns, creating dynamics similar to those seen in the Avis episode. Short interest is at its highest level since 2022, yet technicals like the RSI and MACD suggest selling pressure may be easing. A steady influx of buyers could provide the catalyst to ignite a squeeze. 
Beyond Meat: Product News and Earnings Keep Volatility ElevatedFew stocks have destroyed more investor capital than Beyond Meat Inc. (NASDAQ: BYND), which is down more than 99% since its 2019 IPO. That hasn’t stopped management from experimenting, and recent catalysts have pushed the stock up more than 30% this month. The company announced a partnership with Big Geyser for a protein-enhanced sports drink called Beyond Immerse, and it launched a new line of breakfast sausages and spicy chicken pieces — the latter set to be sold exclusively at Kroger (NYSE: KR). With more than 31% of the float sold short and roughly 4.0 days to cover, the stock has the technical underpinnings for a short squeeze. A bullish MACD crossover in early April signaled a trend reversal, and the RSI has returned to bullish territory for the first time since early March. Beyond Meat also reports earnings on May 6, adding another potential catalyst to watch. 
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