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Interestingly shorts now up to just under 16%, looks like someone is picking up the shares being dumped unless it's all being carried by retail.

Would explain the sudden drops when the SP seems to gather momentum.

It's become quite easy to trade this when you look at the pattern, people can scalp reasonable amounts every other day. Arguably getting a better return than just holding.

Credit to AI

How They Work

Typically, equity swaps are "cash-settled," meaning the investor gets the monetary gains or losses of a stock without ever holding the underlying shares. Consequently, they usually do not grant voting rights. However, the decoupling of economic and voting rights allows investors to manipulate corporate control through two primary structures:

Long Shares + Short Cash Swaps:

An investor buys the physical shares (which gives them voting rights) but hedges all the economic risk by entering into an equity swap where they pay the stock's returns to a bank. This grants them voting control without having any actual financial skin in the game (known as "empty voting").

Long Cash Swaps + Voting Arrangements:

In certain over-the-counter (OTC) swap contracts, a counterparty or institutional bank retains the physical shares as a hedge but legally agrees to cast those shareholder votes exactly as the swap-buyer directs.

Why Investors Use Them

Stealth Accumulation:

Investors can accumulate massive voting influence over a company without tripping the standard transparency thresholds required for physical share purchases.

Corporate Takeovers:

Hedge funds or activists may use these swaps to quietly amass enough voting weight to influence a board decision, wage a proxy fight, or block a merger.

Decoupled Risk:

It permits an investor to have a say in corporate governance (e.g., voting on executive pay or strategic direction) without suffering the financial consequences if the company’s stock price plummets.

So whilst the shorts were selling into the market it looks like JPM have picked up just over 5%.

Be interesting to see if this is part of a bigger play or just a product that has ballooned in investment.