China’s AI Duo Hit by Record Shorts; MiniMax Short Interest at 20%

The record short positioning against Chinese AI names signals that the market is pricing in more than just regulatory headwinds—it implies skepticism about the sector's near-term fundamentals or liquidity conditions. For MiniMax, a 20% short interest level is a crowded trade, which could amplify any positive catalyst into a squeeze, but it also means downside risks are heavily front-loaded. The key watchpoint is whether this bearishness is a broad sector repricing or a targeted bet on specific AI business models, as that distinction will determine if the pressure is cyclical or structural.