The short sellers' favourite ASX stock is back in their sights

I don't think there's an ASX stock I've covered more in 2026 than poor Lotus Resources (ASX: LOT).

The beleaguered uranium miner has spent most of the year as the ASX's most-shorted stock, with total short interest in the company reaching a peak of almost 23% in July.

Since then, the stock dropped 57% in a day after it finally began trading again following an emergency cap raise that was offered at a 66% discount.

That was enough for many short sellers to take some money off the table and, as a result, short interest in LOT dropped backed to 12%, ending the company's months-long run as the most-shorted on the ASX.

Unfortunately for Lotus investors, that wasn't the end of the story. Short interest in the company shot up 5.3bps last week, putting it back at 17.19% short interest, and back on top the list of most-shorted stocks, as of 17 August. 

Lotus is joined at the top of the table by Droneshield (ASX: DRO) and Domino's Pizza (ASX: DMP), with the former rallying 34% earlier this month and likely worrying some short sellers.

It was probably a similar story for anyone shorting Australian Clinical Labs (ASX: ACL), which has jumped 30% in a month after what my colleague Kerry Sun described as a "better-than-feared" FY26 result. 

On the other side of things, Almonty Industries (ASX: AII) is the stock seeing the biggest uptick in short interest after Lotus, with Iress (ASX: IRE), Nick Scali (ASX: NCK) and Treasury Wine Estates (ASX: TWE) all also seeing short interest tick up by 1% or more last week. 

Given there's still a few weeks left in reporting season, we're likely to see other stocks catch the eye of short sellers. Unfortunately for Lotus, it looks like its title as the ASX's most-shorted stock may once again be hard to shake.