Short Selling Scrutinized Over Two Decades: Market Makers Exceed Exemption Limits

Published in Stocks and Investing on Tuesday, August 12th 2025 at 10:30 GMT by WOPRAI
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In the past 20 years (since 2005 with the introduction of RegSho), short selling has come under scrutiny as millions of retail investors have discovered what we have been highlighting since early 2005. Market makers abuse the “market maker’s exemption” and short excessive amounts of shares in your stock without locating, borrowing, paying the rebate or the interest rate to borrow. They are required to cover on the same trading day, and our data proves they do not.

The chart below shows “Daily Short Volume” in Phathom Pharmaceuticals, Inc. (PHAT), and includes both EXEMPT (market makers) and NON-EXEMPT (everyone else) short sales. We consolidate the tape of all 14 US stock exchanges and purchase the “sell short” trade identifier data directly from the exchanges on a daily basis. This complete view of the trading in your stock shows a vastly different picture than “Total Short Interest”, which only includes non-exempt short sales that have not been covered by the twice per month reporting date. Unfortunately, this misses the majority of the short selling.

This indicates that a Short Squeeze may be starting in shares of Phathom Pharmaceuticals, Inc. at $10.58, after crossing above the $10.412 Trigger Price. This could signal a buying opportunity, given the right market conditions.

You can find the full report at [ https://www.woprai.com/ ]

Please find the applicable data below, drawn from all major market providers.

Date	Short Volume	Total Volume	Percentage	Squeeze Trigger	$ Value
2025-08-11	773,293	1,581,577	48.89	10.14	7,841,191
2025-08-08	742,333	1,374,242	54.02	9.68	7,185,783
2025-08-07	1,113,409	2,193,305	50.76	9.58	10,666,458
2025-08-06	840,487	1,152,032	72.96	8.44	7,093,710
2025-08-05	309,478	532,962	58.07	8.45	2,615,089
2025-08-04	370,316	762,955	48.54	8.61	3,188,421
2025-08-01	260,865	501,408	52.03	8.36	2,180,831
2025-07-31	396,437	669,641	59.2	8.8	3,488,646
2025-07-30	386,844	628,456	61.55	8.79	3,400,359
2025-07-29	488,139	824,396	59.21	8.7	4,246,809
2025-07-28	648,810	1,049,920	61.8	9.17	5,949,588
2025-07-25	1,014,944	1,660,767	61.11	9.5	9,641,968
2025-07-24	519,581	1,020,591	50.91	8.7	4,520,355
2025-07-23	378,463	888,302	42.61	8.41	3,182,874
2025-07-22	372,329	589,424	63.17	7.79	2,900,443
2025-07-21	384,360	666,498	57.67	7.93	3,047,975
2025-07-18	547,436	1,008,042	54.31	8.1	4,434,232
2025-07-17	568,951	860,624	66.11	8.3	4,722,293
2025-07-16	617,761	916,089	67.43	8.35	5,158,304
2025-07-15	580,485	882,036	65.81	8.54	4,957,342
2025-07-14	328,685	542,339	60.61	9.02	2,964,739
2025-07-11	422,372	763,209	55.34	9.43	3,982,968
2025-07-10	238,309	619,618	38.46	9.57	2,280,617
2025-07-09	424,832	788,545	53.88	9.36	3,976,428
2025-07-08	349,414	737,110	47.4	9	3,144,726
2025-07-07	800,163	1,321,387	60.55	8.52	6,817,389
2025-07-03	262,664	498,228	52.72	8.75	2,298,310
2025-07-02	449,198	1,143,658	39.28	9	4,042,782
2025-07-01	784,808	1,453,295	54	9.06	7,110,360
2025-06-30	687,482	1,401,936	49.04	9.6	6,599,827
2025-06-27	522,166	1,152,628	45.3	9.75	5,091,119
2025-06-26	439,847	975,051	45.11	9.5	4,178,547
2025-06-25	371,110	718,418	51.66	9.59	3,558,945
2025-06-24	393,902	1,266,749	31.1	9.82	3,868,118
2025-06-23	1,151,677	3,413,247	33.74	9.44	10,871,831
2025-06-20	869,686	1,807,968	48.1	10.43	9,070,825
2025-06-18	657,548	1,879,095	34.99	10.83	7,121,245

Total	331,951,428	686,542,853	48.35	10.41	3,455,728,202

* Totals include all data records back to 2020-08-13 00:00:00, data set is truncated for viewing.

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Short Selling Scrutinized Over Two Decades: Market Makers Exceed Exemption Limits