Jun. 20 at 3:10 PM
As of mid-June 2025,
$CHPT is clearly under pressure. They missed their non-GAAP EBITDA profitability target in Q4 FY25 and again in Q1 FY26, which landed with a thud. The stock’s now hovering around
$0.69, and with over 92 million shares shorted (about 21.45% of float), it's fertile ground for volatility—or a squeeze.
They’ve hinted at a potential reverse split. That’s often a red flag, signaling compliance issues or desperation. But in this case, it could also force shorts to reconcile positions, especially if there’s synthetic or naked short exposure.
The borrow fee rates have spiked past 31%, showing high demand to short. That kind of cost can act like a slow squeeze on short sellers if the price bounces.
Persistent FTDs and high dark pool volume point to illiquidity and potential price distortion. If there's naked shorting in play, a corporate action like a reverse split can surface it—shifting sentiment fast.
