$SRXH: The Short Squeeze Setup Is Stronger Than It Has Been in Months

For weeks, the only thing anyone wanted to talk about was the reverse split.
The assumption was simple:
"Reverse split = sell."
But while everyone was focused on the split, the short-side setup quietly became much more interesting.
**The Borrow Market Changed Overnight**
One of the biggest changes happened after the reverse split.
Before the split, there were roughly **10 million shares available to borrow.**
Today?
Only about **100,000 shares** remain available.
That's a **99%+ reduction** in borrow availability.
At the same time, the borrow fee has climbed to roughly **16%**.
That means:
Shorts have far fewer shares available to open new positions.

Existing short positions are becoming more expensive to maintain.

If buying pressure increases, the supply of borrowable shares is already much tighter than it was before.

This alone doesn't create a squeeze—but it creates conditions that can amplify one.

**Reported Days to Cover Has Increased**

Several market data sources are now reporting approximately **8 days to cover**.
If that figure holds as post-reverse-split data is fully updated, it suggests that, based on average trading volume, it could take shorts multiple trading days to buy back their positions.
The higher the days-to-cover figure, the more difficult it can become for shorts to exit quickly if buying accelerates.

**Short Sellers Are Still Active**

Recent FINRA short-volume data shows that approximately **53% of reported trading volume** has been marked as short sales.
It's important to remember:
Short volume is **not** the same thing as official short interest, since it includes market-making activity.
However, consistently elevated short volume shows that short selling continues to play a significant role in daily trading.

**The Float Is Smaller**

Following the reverse split, the effective number of shares trading in the market has been reduced substantially.
That means it now takes less buying pressure to move the stock than it did before.
If demand increases while borrow remains tight, volatility can increase quickly.

**The Catalyst: The "Super 8-K"**

The biggest catalyst may not be the reverse split itself.
It's the anticipated **Super 8-K**.
Investors are waiting for additional information regarding:
Combined financial statements

Pro forma financials

Details surrounding the completed EMJX acquisition

Treasury strategy implementation

Updated corporate structure

Future operating strategy

That filing has the potential to shift the conversation from "What happened?" to "What does the new SRX Global actually look like?"

**Why Shorts Could Be Under Pressure**

For months, shorts benefited from uncertainty.
Merger uncertainty.

Trading halt.

Reverse split concerns.

General fear surrounding the company's transition.

Most of those known events have now occurred.
The next phase will likely be judged on execution rather than uncertainty.
If the company follows the restructuring with strong operational updates, shorts may find themselves paying higher borrow costs while trying to cover into a much smaller effective float.

**Bull Case**

Borrow availability has reportedly fallen from roughly **10 million shares to only about 100,000**.
Borrow fees have increased to around **16%**.
Reported days to cover have increased.
Short-selling activity remains elevated.
The reverse split significantly reduced the effective share count.
The upcoming Super 8-K could provide clarity on the combined business and future strategy.
If positive news arrives while borrow remains tight, these factors could combine to create an environment where price moves become more pronounced.

**Bottom Line**

The setup today looks very different than it did before the reverse split.
Borrow availability has tightened dramatically.
Borrow costs have increased.
Reported days to cover have risen.
Short-selling activity remains elevated.
Now the market is waiting for one thing:

**The Super 8-K.**

If that filing reinforces the long-term strategy and attracts buyers, the current borrow dynamics could amplify the move.
The ingredients are there.
Now the company needs to deliver.

*Not financial advice. Do your own research.*