Year-End 2025: ASX Short Squeeze Candidates & Hot News Roundup
Our final analysis of 2025 combines AI-summarized announcements from heavily shorted stocks with our latest squeeze candidate scores. See what's moving DRO, PLS, PDN, and more.
As 2025 comes to a close, we're combining two powerful features from ASXShort.app: our AI-summarized announcements from highly shorted stocks and our proprietary squeeze candidate scoring system. This gives you a comprehensive view of where the action is happening in the short-selling space.
Hot News from Highly Shorted Stocks
Our AI has been busy analyzing price-sensitive announcements from the most shorted stocks on the ASX. Here are the key developments over the past two weeks:
DroneShield (DRO) - 9.84% Short Interest
DroneShield has been making waves with multiple contract wins:
$8.2m Western Military Contract (Dec 29)
- DroneShield secured an $8.2m contract for handheld counter-drone systems with a western military end-customer
- Delivery expected by end of 2025 or early Q1 2026, with payment in Q1 2026
- This adds to DroneShield's record $97.7m in locked-in revenues for 2026
$6.2m Asia Pacific Contract (Dec 23)
- DroneShield secured a $6.2 million contract for an Asia Pacific military customer
- Delivery and payment are anticipated in 2026
These contract wins demonstrate strong demand for counter-drone technology. With nearly 10% of shares sold short, these positive developments could pressure short sellers who may have underestimated the company's revenue pipeline.
Lifestyle Communities (LIC) - 9.4% Short Interest
Growth Strategy Announcement (7 days ago)
- LIC underpins growth strategy with long-term debt facilities
- The company is positioning itself for expansion with secured financing
Lotus Resources (LOT) - 9.1% Short Interest
First High Grade Ore Delivered (8 days ago)
- Lotus Resources delivered its first high grade ore to ROM
- A significant operational milestone for the uranium developer
Telix Pharmaceuticals (TLX) - 10.9% Short Interest
Precision Medicine Portfolio Update (9 days ago)
- TLX released updates on its precision medicine portfolio
- The radiopharmaceutical company continues advancing its pipeline despite short interest exceeding 10%
This Week's Top Squeeze Candidates
Our simplified scoring system (55% Shorts Wrong + 30% Squeeze Potential + 15% Squeeze Starting) has identified the following stocks with the highest squeeze potential:
1. PLS Group Ltd (PLS) - Basic Materials
Blended Score: 76.15 | Confidence: MEDIUM
PLS continues to dominate our squeeze candidate list with exceptional metrics:
- Current Short Interest: 8.53% (down 1.68% in the past week)
- Days to Cover: 9.0 days
- Price Resilience Score: 100/100 (maximum strength against shorts)
- 60-Day Momentum: +85.59%
- Current Price vs Short Entry: 119.13% higher than the weighted average short entry price of $1.99
The "Shorts Wrong" component scored 94/100, indicating that short sellers have been severely punished. PLS is trading at its 52-week high after a remarkable rally. Short sellers who entered at the weighted average price of $1.99 are now sitting on massive losses with the stock at $4.38.
2. Paladin Energy (PDN) - Uranium
Blended Score: 74.60 | Confidence: HIGH
PDN maintains a strong position in our rankings:
- Current Short Interest: 13.11%
- Days to Cover: 17.9 days
- Price Resilience Score: 70/100
- 20-Day Momentum: +23.23%
- Current Price vs Short Entry: 35.76% higher than weighted average entry
The exceptionally high Days to Cover (nearly 18 trading days) means short sellers face significant liquidity risk if they need to exit positions quickly. Combined with positive momentum and the broader uranium sector tailwinds, PDN presents a compelling squeeze setup.
3. Develop Global (DVP) - Mining Services
Blended Score: 73.37 | Confidence: MEDIUM
DVP rounds out our top three:
- Current Short Interest: 5.12%
- Days to Cover: 11.9 days
- Price Resilience Score: 100/100
- 20-Day Momentum: +26.91%
- Current Price vs Short Entry: 32.66% higher than weighted average entry
DVP's recent $200m OceanaGold contract win has validated the bull case and left short sellers underwater.
Other Notable Candidates
| Stock | Score | Short % | Days to Cover | Confidence |
|---|---|---|---|---|
| DYL | 64.78 | 8.45% | 13.2d | MEDIUM |
| FLT | 63.33 | 10.32% | 4.3d | MEDIUM |
| CXO | 60.80 | 11.61% | 5.0d | HIGH |
| SYA | 56.70 | 7.94% | 7.6d | LOW |
| IEL | 55.98 | 12.59% | 5.7d | LOW |
What the Data Tells Us
Looking at the convergence of news flow and squeeze metrics, several themes emerge:
Contract Momentum in Defence: DroneShield's back-to-back contract wins demonstrate strong commercial traction, yet short interest remains elevated at nearly 10%. This disconnect between operational progress and short positioning could resolve explosively.
Uranium Sector Strength: Both PDN and DYL feature prominently in our squeeze candidates, reflecting broader sector momentum. Uranium stocks often move together, and positive developments can cascade across the sector.
Price Resilience Matters: Stocks like PLS and DVP with perfect 100/100 Price Resilience scores have demonstrated that despite significant short selling, they've maintained upward trajectories. This is the key signal our backtesting shows has predictive power.
Shorts Getting Squeezed: The average "price vs weighted average short entry" across our top candidates is +65%, meaning short sellers are collectively sitting on substantial paper losses.
Looking Ahead to 2026
As we enter the new year, watch for:
- Continued uranium momentum driving PDN and related stocks
- DroneShield execution on its record $97.7m revenue pipeline
- PLS's trajectory as it tests new highs with shorts increasingly trapped
- Holiday volume effects potentially amplifying moves in either direction
Disclaimer: This blog post is for informational and educational purposes only and is not financial advice. The information provided is based on data available as of 2025-12-31 and reflects our proprietary analytical models combined with AI-generated announcement summaries. Investing in the stock market involves risks, and short squeeze opportunities are inherently volatile. You should conduct your own thorough research and consult with a qualified financial professional before making any investment decisions. ASXShort.app does not guarantee the accuracy or completeness of the data presented, nor does it guarantee future stock performance. AI summaries should be verified against original announcements.