Short-selling activity has returned to the UK market with renewed intensity, as a growing number of listed companies attract significant bearish bets, according to analysis by White & Case LLP based on filings with the Financial Conduct Authority.
As of 23 March 2026, three UK-listed companies have disclosed net short positions exceeding 10% – a level not reached at any point in 2025. At the 5% threshold, 20 companies now meet or exceed that mark, compared with just two throughout last year. The consumer sector is currently the most heavily shorted.
The uptick coincides with several prominent short campaigns. Viceroy Research recently targeted Close Brothers over potential liabilities linked to the car finance scandal, while Wizz Air has faced pressure following warnings tied to geopolitical tensions involving Iran.
Patrick Sarch, Head of UK Public M&A at White & Case LLP, said the firm had anticipated the rebound after a prolonged bull market left valuations elevated.
“As valuations come under pressure, investors are taking a closer look at companies whose fundamentals may not support their equity stories,” he said.
While short-selling can support price discovery and governance – having helped expose issues at companies such as Wirecard and Home REIT – issuers are being urged to strengthen their defences.
Advisers recommend greater transparency, rigorous internal review of financial and disclosure practices, and clearer communication of equity stories. Companies should also prepare response plans for potential short attacks to avoid losing control of the narrative.
The resurgence comes as the Financial Conduct Authority moves to finalise reforms that would replace named short position disclosures with anonymised, aggregated data.
While designed to encourage short-selling, the changes could make it harder for companies to identify and respond to investors building positions against them, raising fresh questions around market transparency as short interest rises.
