Analysis: MSTR March Trading Failure Amounts to $180 Million, Increasing Short Squeeze Risk

According to TechFlow, citing data from CoinDesk, the SEC, and Fintel, more than 609,000 shares of MSTR stock failed to settle in March, with a nominal value exceeding $180 million. On March 26 alone, the failed transaction amount surpassed $63 million, highlighting ongoing settlement issues related to short activities. This may indicate significant market volatility ahead.

Data shows that short positions in MSTR stocks remain high, with around 29 million shares shorted as of April, accounting for over 12% of all publicly traded shares. Additionally, on April 22, about one-third of the MSTR trades were short sales conducted in private venues like dark pools, making it difficult for the public to track short selling activities in real-time. With the stock price having risen 35% since early March, shorts may be forced to buy back shares to cover positions, potentially triggering a "short squeeze."