Lead
Shares of GLSI are now difficult to short, with borrowing costs approaching 110% and less than 1,000 shares available to short. The situation has drawn attention from traders who note the company’s high insider ownership and an upcoming Phase 3 that could affect supply.
Background
GLSI is an index fund that has attracted significant insider ownership, with insiders holding 53% of the shares and those shares locked up. Historically, the stock ran a 3,000% run in 2021 during a Phase 2 event, yet it had not been heavily shorted at that time.
What Happened
According to a post on Reddit’s r/stocks, the current borrowing cost for GLSI is about 110% and the stock is marked as Hard to Borrow at all brokers. The post notes that less than 1,000 shares are available to short and that the upcoming Phase 3 could change the supply dynamics. The user also mentions holding fewer than 50,000 shares and plans to add more as the price rises.
Market & Industry Implications
The high borrowing cost and limited short availability suggest that short sellers are facing a squeeze. The locked‑up insider holdings and the upcoming Phase 3 could further tighten supply, potentially impacting the stock’s liquidity and price volatility.
What to Watch
- Release of Phase 3 results, which could alter the supply of shares.
- Any changes in borrowing cost or short availability reported by brokers.
- Insider trading activity, especially any changes to the 53% locked‑up holdings.
