Which are the 10 most shorted ASX shares?

Once a week, I like to look at ASIC's short position report to find out which ASX shares are being targeted by short sellers.

That's because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, listed below are the 10 most shorted shares on the ASX this week according to ASIC.

The top 10 most shorted ASX shares

• Lotus Resources Ltd (ASX: LOT) is still Australia's most shorted share with short interest of 22.5%. This uranium developer's shares returned from their suspension last week and sank deep into the red, much to the delight of short sellers.
• Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 13.6%. An encouraging trading update from this pizza chain operator last week sent its shares storming higher.
• DroneShield Ltd (ASX: DRO) has short interest of 13.4%, which is up again since last week. Concerns over an ASIC investigation into the counter-drone technology company and increasing competition could be behind this. 
• 4DMedical Ltd (ASX: 4DX) has seen its short interest increasing slightly to 13.4%. This could be due to valuation concerns, with the medical technology company boasting a market capitalisation of around $2.2 billion but revenue of $7.2 million in FY 2026.
• Flight Centre Travel Group Ltd (ASX: FLT) has 12.2% of its shares held short, which is up week on week again. There may be concerns that the Middle East conflict could negatively impact the travel agent's booking volumes. 
• Paladin Energy Ltd (ASX: PDN) has 12% of its shares held short, which is up week on week. Short sellers are not giving up on this uranium producer despite the release of a positive quarterly update.
• Telix Pharmaceuticals Ltd (ASX: TLX) has seen its short interest ease slightly week on week to 11.7%. It hasn't been as easy as expected for this radiopharmaceuticals company to gain US FDA approvals over the past 18 months.
• Boss Energy Ltd (ASX: BOE) has short interest of 11.6%, which is down week on week. There are concerns over this uranium miner's production outlook beyond 2027.
• CAR Group Limited (ASX: CAR) has short interest of 11.5%, which is down since last week. This may be due to fears that higher interest rates could negatively impact auto listings.
• Healius Ltd (ASX: HLS) has entered the top ten with short interest of 10.8%. This healthcare company has been battling weaker volumes. Short sellers don't appear to believe this trend will change in the near term.

The post Which are the 10 most shorted ASX shares? appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro has positions in Domino's Pizza Enterprises. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Domino's Pizza Enterprises, DroneShield, and Telix Pharmaceuticals. The Motley Fool Australia has recommended CAR Group Ltd, Domino's Pizza Enterprises, Flight Centre Travel Group, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2026