Short Squeeze Penny Stocks

Penny stocks (under $5) with elevated short interest and high days-to-cover ratios, ranked by a composite "squeeze readiness" score that blends short-float pressure, technical setup, and momentum signals. These are the names where a short squeeze is mechanically most plausible.

Today's scan surfaced 25 short squeeze candidates — composite squeeze-readiness score combining short interest, days-to-cover, and technical setup. At the top, Children's Place, Inc. (PLCE) carries 51.3% short float, 14.0 days-to-cover, readiness score of 80 in the “Coiled” phase — the highest-conviction squeeze setup on the board today. Runner-up Sana Biotechnology, Inc. Common Stock (SANA) adds depth to the list. Review the full ranking below.

Data as of 2026-08-23 · End-of-day prices
#SymbolCompanyPriceMkt CapShort FloatDTCReadinessSetup
1PLCEChildren's Place, Inc.$2.490056.3M51.3%14.080Coiled
2SANASana Biotechnology, Inc. Common Stock$3.9100885.0M25.4%16.379Igniting
3PRMEPrime Medicine, Inc. Common Stock$3.3900507.5M34.6%12.978Igniting
4NANano Labs Ltd Class A Ordinary Shares$2.000042.9M10.7%48.078Igniting
5PROKProKidney Corp. Class A Ordinary Shares$1.6100320.1M23.5%22.475Coiled
6GEMIGemini Space Station, Inc. Class A Common Stock$4.2800493.1M27.6%10.875Coiled
7WOOFPetco Health and Wellness Company, Inc. Class A Common Stock$2.8400831.0M23.2%14.374Coiled
8IPSCCentury Therapeutics, Inc. Common Stock$2.0700364.3M24.3%40.773Coiled
9FLYXflyExclusive, Inc.$1.310060.1M67.7%3.872Coiled
10RXRXRecursion Pharmaceuticals, Inc. Class A Common Stock$3.50001.69B41.6%9.372Igniting
11ALTAltimmune, Inc. Common Stock$3.1100552.3M29.3%11.572Coiled
12ALLOAllogene Therapeutics, Inc. Common Stock$2.0900648.9M35.7%9.271Coiled
13SERVServe Robotics Inc. Common Stock$4.9800480.8M36.7%8.670Coiled
14CABACabaletta Bio, Inc. Common Stock$3.1300437.0M29.8%18.570Igniting
15CURVTorrid Holdings Inc.$2.2100253.8M16.5%13.570Coiled
16BTCTBTC Digital Ltd. Ordinary Shares$1.14008.2M24.6%8.570Igniting
17GALTGalectin Therapeutics Inc.$3.6800195.6M19.9%23.670Coiled
18DOMHDominari Holdings Inc. Common Stock$2.580057.4M47.6%12.369Coiled
19WKHSWorkhorse Group, Inc$3.230034.0M21.9%10.869Coiled
20CDZICADIZ, Inc.$3.6600250.6M17.7%7.269Igniting
21EDITEditas Medicine, Inc. Common Stock$3.1100395.9M15.8%18.269Igniting
22HTZHertz Global Holdings, Inc Common Stock$2.2500500.5M79.0%6.068Coiled
23CCCCC4 Therapeutics, Inc.$4.0000384.8M34.2%11.168Coiled
24CATXPerspective Therapeutics, Inc.$3.3000331.9M24.8%25.768Coiled
25UPXIUpexi, Inc. Common Stock$1.080058.8M24.4%17.267Coiled

How We Rank Squeeze Candidates

A short squeeze happens when a heavily shorted stock starts rising. Shorts have to buy back shares to cover, pushing the price further up, which forces more covering, and so on. The mechanical inputs are well known. The hard part is filtering noise.

Our readiness score weights five things:

  • Short float %: the more of the float that's short, the more fuel for a squeeze.
  • Days to cover (DTC): how many normal trading days shorts would need to exit. Higher = harder to exit cleanly.
  • Recent technical setup: RSI positioning, TTM Squeeze status, MACD direction, moving-average structure.
  • Price momentum: recent 5-day move, often the trigger.
  • Setup category: Coiled (building), Igniting (just moved), Late stage (already extended), Falling Knife (avoid).

The Setup column tells you which phase a name is in. "Coiled" and "Igniting" are where the asymmetry is best; "Late stage" means most of the move may already be gone.

See also: daily archive of this scan (historical day-by-day snapshots), highest short interest, nano-cap squeezes.

Indicators Used in This Scan

Short Float % is the percent of a company's free-tradeable float that's currently sold short. Higher short float means more shares that must eventually be bought back — more potential squeeze fuel. Above 20% is elevated; above 30% is unusually high. The short interest is reported by FINRA and updated bi-monthly.

Days to Cover (DTC) divides the total short interest by the average daily trading volume — an estimate of how many normal trading days shorts would need to exit their positions. DTC above 3 means shorts can't quietly cover on average volume; DTC above 7 means a forced unwind has to push price meaningfully higher to find liquidity.

TTM Squeeze identifies low-volatility periods by detecting when Bollinger Bands contract inside Keltner Channels. The squeeze itself doesn't predict direction — only that volatility expansion is coming — but the accompanying momentum histogram indicates the likely direction of the eventual release. Combine a positive squeeze with positive momentum for high-conviction bullish setups.