EquiLend Borrow Quantity in Kumho Tire surged from 3.04 million shares on June 26th to a peak of 10.85 million by July 16th as short positioning built ahead of a U.S. court ruling expected around August 20th. However, covering began from July 30th, with borrow quantity falling 37% by August 5th to 6.82 million. EquiLend Cost to Borrow followed an inverse trend, rising to almost 3,000 bps since July 30th, while EquiLend Squeeze Score reached 51 as the exit accelerated – suggesting the price recovery may have been amplified by shorts competing to unwind.

Short interest began rising in Kumho Tires as a U.S. court ruling on a lawsuit from logistics firm James Worldwide was set to land around August 20th, escalated by an FTC complaint on July 29th which extended the dispute to Korean regulators. The following day, Kumho reported Q2 operating profit up 4% year-on-year at ₩182.2 billion, wrong-footing shorts and driving a 44% price rebound to $5.55 by August 7th. EquiLend data flagged the crowded short weeks in advance, with EquiLend Squeeze Score rising as exit risk built.

As Kumho heads into the August 20th ruling on bumpy terrain, subscribe to EquiLend’s real-time data to see whether shorts return amid heightened costs to maintain short positions.