Virgin Galactic Shorts Suffer $64M Loss as Short Interest Hits 23.2%
LUNR•Virgin Galactic’s short interest hit 23.2% of float, with $118.3M in short exposure exceeding $103.1M in combined long positions and driving a $64M year-to-date loss on a 12x volume surge to 286.1M. The company has begun ground testing its first Delta-class spacecraft for Q3 glide and Q4 rocket flights.
1. Short Interest and Squeeze Dynamics
Short interest reached 23.2% of float with $118.3M in exposure exceeding $103.1M in combined long holdings, forcing a $64M year-to-date loss for short sellers. Elevated utilization at 88.5%, borrow fees of 9.12% and a Squeeze Score of 100 reflect intense covering, while volume soared to 286.1M shares.
2. Major Stake and Settlement Catalysts
Investor Rich Huang disclosed a 5.26% stake, including options tied to 5.2M additional shares, bolstering confidence in the company’s outlook. The company secured preliminary court approval of a $2.75M insurer-funded litigation settlement, with half of proceeds to be retained upon final approval, and Jefferies reiterated a buy rating with an increased price target.
3. Delta-Class Spacecraft Testing Timeline
Virgin Galactic delivered its first Delta-class spacecraft to its Phoenix facility and has commenced ground testing. The company aims to begin glide-flight testing in Q3 followed by rocket-powered spaceflight testing in Q4, while a second operational spacecraft enters fabrication for service in late 2026 to early 2027.
4. Retail and Institutional Sentiment
Passive institutional ownership climbed to a one-year high of 9.4M shares but remains below the volume of shares sold short, indicating mixed positioning. Retail sentiment hit 98/100 with message volume surging over 29,000% week-over-week, highlighting strong speculative interest despite broader sector volatility.
