IonQ Shares Jump 19%, Raising Risk of Short Squeeze After Bears Pile In
$IONQ Inc.(IONQ)$
Trading in borrowed IonQ shares that were sold short soared more than five-fold to 14.42 million shares Tuesday from a day earlier, according to exchange data. That accounted for 21.2% of the 68.01 million shares traded that day, when the stock soared 20%.
The bearish bets ran headlong into news that IonQ was selected for the Defense Advanced Research Projects Agency's Heterogeneous Architectures for Quantum, or HARQ, program. The contract will support IonQ's development of high-speed interconnects capable of linking multiple types of quantum computers, including trapped ions, neutral atoms and superconducting qubits.
In a separate announcement tied to World Quantum Day, IonQ said it had photonically interconnected two remote trapped-ion quantum systems, calling it a “foundational technical milestone.” The company said the work, funded through an Air Force Research Laboratory agreement, demonstrates entanglement between distant systems and lays groundwork for quantum networks.
A day earlier, IonQ and the University of Maryland disclosed a $7.5 million expansion of their QLab partnership, backed by Maryland's Capital of Quantum Initiative. The deal adds quantum networking and a new quantum memory node to the facility.
The rally put 96.5% of IonQ holders back in profit, with the stock reclaiming its average shareholder cost of $33.60. The average cost of the remaining unprofitable positions is $47.70, making that the resistance level that could trigger selling once those holders reach breakeven. Demand has repeatedly been strong at $33.10, making that the support level.
Despite the price jump, net money flow was still negative $1.94 million around noon. Inflow totaled $620.98 million against $622.92 million in outflow. The selling was heavy in small orders: trades under the“S”size bracket saw $263.08 million in buying versus $281.88 million in selling. The opposite was true for extra-large orders with buying reaching $57.86 million, exceeding selling of $45.72 million.
Monthly block-order data show net outflow dominated February through April, reversing heavy inflows in October when IonQ shares peaked at $86.64.
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