Why the Australian Financial Review is trending

Published 26 October 2026 at 2:16 pm · 10 sources · 500+ searches today

The Australian Financial Review is trending because it reported a sharp rise in short-selling across Australian shares, with hedge funds betting against local stocks at nearly three times the levels seen at the height of the COVID-19 pandemic.[2] The latest Week 44 short-interest tables, published on 26 October 2026, show DroneShield still leading the ASX short list.[1][3]

Key facts

26 October 2026: Week 44 short-interest rankings were published.[1][3]
DroneShield (ASX: DRO) has 15.93% short interest, the highest on the ASX.[1]
Lotus Resources is second at 15.78%; Boss Energy is third at 14.94%.[1]
PLS Group has 13.60% short interest, up 0.71 points week on week.[3]
AFR said short-selling is near three times pandemic-era levels.[2]

What happened

The Australian Financial Review reported on 25 October 2026 that hedge funds are betting against Australian shares at nearly three times the levels seen at the height of the COVID-19 pandemic.[2] That report has drawn attention because it suggests short-selling is unusually elevated across the market.

On 26 October 2026, the latest rankings using ASIC-attributed short-interest data showed the week’s most shorted ASX companies, alongside the biggest market risers and fallers.[1][3]

The stocks drawing attention

DroneShield (ASX: DRO) remains the most shorted stock, with short interest at 15.93% of issued shares.[1] That was down 0.30 percentage points for the week, but up 1.63 points over the month.[1]

Lotus Resources ranked second at 15.78%, while Boss Energy was third at 14.94%.[1] Other names in the top 10 included PLS Group, Zip Co, Paladin Energy, IperionX, Lynas Rare Earths, Electro Optic Systems and Telix Pharmaceuticals.[1]

Why investors are watching

Short-selling can be read as a warning signal, especially when it spreads beyond the major banks and into miners, energy names and growth stocks.[2] At the same time, heavily shorted shares can also attract speculative interest if traders look for a short squeeze.[2]

PLS Group drew attention because its short interest rose to 13.60% after approval of its $1.9 billion P2000 expansion, with uncertainty around lithium prices and possible oversupply in 2027.[3] Zip Co also stayed under scrutiny, with short interest at 13.31% as concerns continue around its US operations, credit losses and customer growth.[1][3]

What to watch next

The ranking to watch is the next ASIC-linked Week 45 update, which will show whether the surge in short interest is broadening or easing.[1][3] Movement in the most shorted stocks can shift quickly from week to week.

One point of uncertainty is Glencore: one report listed it as a new top-10 entrant at 13.4%, while the Week 44 table instead listed Telix Pharmaceuticals.[3][6] As of 26 October 2026, that discrepancy remains unresolved and may reflect different datasets or reporting dates.[3][6]

Frequently asked

Why is the Australian Financial Review trending in Australia today?

Because it reported that short-selling in Australian shares has surged to nearly three times pandemic-era levels.[2] The latest Week 44 rankings also showed DroneShield still as the most shorted ASX stock.[1][3]

What is the most shorted ASX stock as of 26 October 2026?

DroneShield (ASX: DRO) is the most shorted stock, with short interest at 15.93% of issued shares.[1] It was down 0.30 percentage points week on week.[1]

Which stocks are next on the short-interest list?

Lotus Resources ranked second at 15.78% and Boss Energy ranked third at 14.94%.[1] PLS Group followed at 13.60% and Zip Co at 13.31%.[1][3]

Why are traders focusing on short interest in Australian shares?

High short interest is often seen as a warning about market risk or company-specific concerns.[2] But it can also attract speculation about a short squeeze if buying pressure forces shorts to cover.[2]

Sources

Researched automatically from live news and written by Simpledot's AI; facts are limited to what the sources above report as of the published time. Spot an error? Tell us.