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So I am looking a particular amount shorted of a stock on bloomberg. The first panel clearly shows that SI ratio is decreasing on the last data point. Also simultanously it shows the price of the security decreasing on the last data point (everything else constant, i.e. if the amount shorted did not change this should increase the short interest ratio).

Worse, the second panel of the picture, shows an increase in total amount shorted.

So overall shouldn't the Short interest ratio be increasing?

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The short interest is 3.264M and represents the number of shares sold short over the number of oustanding shares. So, assuming 100M outstanding shares (arbitrary number), 3.246M shares are shorted on the last day of the graph.

We also have a short interest ratio of 1.1738 for a price of 34.83 monetary units. Then, this means that average daily volume (ADV) over the last 30 trading days is $3.246M/1.1738 \approx 1.868M$.

It's clear that the last days SI increased, so more shares were shorted. At the same time, SIRatio was decreased, and this means that the ADV should have been increased disproportionally compared to SI. Averages are sensitive to outliers.

Given the security went from the 20s to 80s, huge volume of shares might have been traded near the tops, so this is aligned to my explanation above.

In addition, recent witch-hunts (!) have implied that the correct SI might not be very well reported. Are these two Bloomberg numbers (SI & SIRatio) just given data points or one is calculated based on the other?

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