MSTR Stock Faces Settlement Issues Amid High Short Positions

According to Foresight News, data from the U.S. Securities and Exchange Commission (SEC) and Fintel reveal that over 609,000 shares of MSTR stock failed to settle in March, with a nominal value exceeding $180 million. On March 26 alone, the failed transactions amounted to more than $63 million, highlighting ongoing settlement issues related to short-selling activities, which may indicate significant market volatility ahead. The data shows that short positions in MSTR stock remain high, with approximately 29 million shares sold short as of April, accounting for over 12% of all publicly issued shares. Additionally, about one-third of MSTR trades on April 22 were conducted as short sales in private venues such as dark pools, making it difficult for the public to track short-selling activities in real-time. As the stock price has risen by 35% since early March, short sellers may be forced to buy back shares to cover their positions, potentially triggering a short squeeze.