Short float represents the percentage of a publicly traded company's total tradable shares—known as the public float—that have been sold short by investors who are betting on a decline in the stock price. It is calculated by dividing the total number of shorted shares by the total number of shares available for public trading. A high short float indicates significant bearish sentiment among market participants, as many traders anticipate downward price momentum. However, an elevated short float can also create the potential for a sudden upward price squeeze if positive news forces short sellers to buy back shares rapidly to cover their open positions and cut losses.