With questions growing due to shaky underlying financials and uncertainty around silicon carbide’s ongoing involvement in the AI boom, Wolfspeed’s EquiLend Utilization has surged from below 50% to more than 98% by May 26. With supply dwindling in the lender-to-broker market and another 12.4 million shares on loan in the broker-to-broker market, EquiLend Cost to Borrow has surged as high as 1,600 bps this month. This combination of market conditions has pushed EquiLend’s Short Squeeze Score as high as 77 in late-May, signaling meaningful squeeze pressure and potential warning signs for investors.

Wolfspeed emerged from Chapter 11 on Sept. 29, 2025, just 91 days after filing, eliminating about $4.6 billion in debt and cutting annual cash interest expense by about 60%. The comeback was driven by AI data center revenue climbing 50% in a single quarter and a March 2026 refinancing that cleared another $476 million in high-cost debt. Yet short sellers re-engaged through Q1 2026: Third-quarter FY 2026 results on May 5 confirmed gross margins remain negative, and Q4 revenue was guided to a disappointing $140 million to $160 million.

With Wolfspeed back under intense investor scrutiny, subscribe to EquiLend’s real-time data to track every shift in short interest and see how short sellers are positioning.