Share recall imbalance intensifies volatility in Infosys ADR trading

A large stock lending recall overwhelmed normal trading volumes, creating a supply-demand imbalance that amplified the Infosys ADR short squeeze.

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Share recall imbalance intensifies volatility in Infosys ADR trading

Share recall imbalance intensifies volatility in Infosys ADR trading
The sharp rise in Infosys ADR prices was driven by a mechanical short squeeze caused by a sudden stock lending recall. While Infosys ADRs typically trade around 7–8 million shares daily, traders indicated that nearly 45–50 million shares were recalled by a lender, far exceeding normal market liquidity. This mismatch forced short sellers to scramble for available shares, pushing prices higher in rapid succession.