As SoftBank Group's share price rises, unrealized losses are mounting for short sellers betting on a price drop. According to data from S3 Partners, the short interest relative to the float reached 2.27% as of the 9th, the highest level since July 2025.

Due to the price surge since the beginning of September, short sellers have incurred unrealized losses of approximately $1.047 billion (approx. ¥161.7 billion). Year-to-date losses have expanded to approximately $1.236 billion on a mark-to-market basis. This trend is driven by expectations that OpenAI, a company in which SoftBank invests, is preparing a new AI model called "GPT-6 Astra," contributing to a price increase of about 31% since the start of this month.

Sam Pearson, Research Director at S3 Partners, pointed out that if the share price continues to rise, the situation for short sellers will worsen, increasing the risk of a short squeeze (a rapid price spike caused by forced buy-backs). Meanwhile, some voices have pointed to concerns regarding the company's massive AI investment plans and fundraising, leading to cautious views on the sustainability of the stock price.

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