Trump Media Faces Surging Short Interest After Explosive Rally - Betting Against the Hype

Short sellers are circling Trump Media, piling on bets that its recent parabolic rally is about to reverse. The surge in bearish positioning signals a high-stakes clash between momentum traders and skeptics betting the stock has run too far, too fast.

The Contrarian Wager

While retail enthusiasm fueled the ascent, institutional desks report a sharp uptick in borrowed shares—a classic precursor to a short squeeze or a painful correction. It's a trade built on timing the gap between viral sentiment and fundamental reality.

Market Mechanics at Play

This isn't just about one stock; it's a case study in modern market dynamics. Social media buzz can launch a rocket, but gravity—and balance sheets—eventually applies. The rising short interest acts as a friction brake, testing whether the rally has real thrust or is just running on fumes.

In the end, it's another reminder that on Wall Street, for every buyer dreaming of a moonshot, there's a seller happy to rent them the ladder—at a premium, of course.

Short sellers stack bets after merger sends Trump Media shares higher

Trump Media is still losing money, and its shares are down almost 60% over the past 12 months even after the recent pop.

Right now, President Donald Trump owns 115 million shares, about 40% of the company, but after the merger closes, his stake would drop to roughly 20%.

Short interest NEAR 16 million shares puts bearish positioning near levels last seen in October. The build came as the stock stayed volatile following the announcement. With the price still well below where it traded a year ago, some investors are betting the recent gains will not hold as the market absorbs the scale of the deal and the company’s ongoing losses.

Trump Media’s token plan increases exposure as America goes pro-crypto

At the same time, Trump Media said earlier this week it plans to issue a new token to shareholders, giving one token for each share held through a partnership with Crypto.com, and the token will operate on the Cronos blockchain.

Trump later said on Truth that the token holders could receive rewards tied to its products.

Chief executive Devin Nunes called the rollout “a first-of-its-kind token distribution” that will “reward Trump Media shareholders, and promote honest and open markets.” Devin also serves at the WHITE House as chair of the Intelligence Advisory Board, where he advises the president on intelligence matters. The company said the tokens would be issued “in the near future.”

Founded in 2021, Trump Media has expanded its push into crypto while also moving into artificial intelligence and financial services. Despite that expansion, its shares have fallen more than 60% this year. The crypto plan adds to Trump-linked ventures that have already generated hundreds of millions of dollars and allegations of conflicts of interest from Democrats in Congress and even some Republicans.

Since returning to the White House in January, Donald has backed looser rules for crypto trading platforms and related businesses. The industry spent millions during the 2024 election cycle, backing candidates including him. Over the summer, he signed the country’s first major national crypto law, a step that folded crypto deeper into the financial system.

Still, investor appetite has cooled this year as traders pulled away from volatile bets. Bitcoin is on track for an annual loss after sliding from record highs set in October. Some Trump-linked bets have stumbled too. The TRUMP meme coin surged ahead of the January inauguration and quickly ranked among the most valuable tokens. Since then, it has lost more than 90% of its value.

Get seen where it counts. Advertise in Cryptopolitan Research and reach crypto’s sharpest investors and builders.