Pop Mart International Group’s first share buyback in nearly two years hasn’t deterred short sellers. Their bearish bets persist despite a sharp rally that makes those positions increasingly risky. The toy retailer’s move to repurchase shares signals management confidence, yet the market remains skeptical about its growth trajectory.

The buyback, a rare defensive maneuver, aims to stabilize the stock and counter persistent pessimism. Short interest remains elevated, reflecting concerns over Pop Mart’s profitability and the sustainability of its blind-box model. Investors are weighing the company’s expansion plans against a challenging retail environment and shifting consumer tastes in China.

Short sellers face mounting pressure as the stock climbs, potentially forcing a short squeeze if the rally continues. The divergence between corporate action and market sentiment highlights a deep bearish conviction. Watch for Pop Mart’s next earnings report and any updates on its international expansion, which could sway the debate.