CAPR surged over 60% after-hours after Q2 earnings and an FDA update confirming it will review an amended BLA for Deramiocel.
Retail traders on r/Shortsqueeze highlighted trapped short sellers, strong cash reserves of $237.9M, and a potential short squeeze setup.
CAPR's ranking on Tendie.bot jumped 1,297 spots, signaling a massive spike in retail investor interest.
Capricor Therapeutics ![]()
On r/Shortsqueeze, a detailed post argued that the setup was ripe for a massive short squeeze. The post noted that over 15.5 million shares were short, representing a significant portion of the float, and that the company's $237.9 million cash reserve eliminated the bear thesis of imminent dilution. The author pointed to institutional shorts being trapped and predicted that long funds would pile in, potentially triggering a full-blown squeeze. The post garnered 30 upvotes and 62 comments, reflecting strong engagement.
Another r/Shortsqueeze post featuring a short squeeze scan ranked CAPR among several candidates with high squeeze potential, while a post on r/smallstreetbets compared CAPR's setup to Ondas (ONDS), suggesting that CAPR's rise could be a precursor for other squeeze candidates. The overall sentiment on Reddit was cautiously bullish, with traders focused on the FDA update and the short interest dynamics.
The FDA's willingness to review an amended BLA is a significant regulatory milestone for Capricor. The company's focus on upper limb function in Duchenne muscular dystrophy addresses a critical unmet need, and the positive trial results (p=0.029) provide a strong statistical basis. Combined with a robust cash position, the bear case that shorts had been betting on appears to have crumbled, at least in the eyes of retail traders.
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