HydroGraph: The Mother of All Short Squeezes Is Loading

  • SmallCapInvestor
  • Technology
X
LinkedIn
Facebook
Reddit
WhatsApp
Email

In the summer of 2025, HydroGraph Clean Power (CSE: HG; OTCQB: HGRAF) was a virtually unknown Canadian microcap. Trading at just $0.25 per share, it flew under the radar of most retail investors and institutions alike.

Then came the spark that lit the fuse: Kevin Bambrough, former Sprott Asset Manager and veteran investor, brought the HydroGraph story to light on X.

The Rise

Bambrough’s reputation and following gave HydroGraph instant credibility in the small-cap community. His posts outlining HydroGraph’s technology, and his view that it represented the future of advanced materials, went viral across trading circles.

As retail investors began piling in, HydroGraph’s stock ignited. Within weeks, it soared from $0.25 to a high of $3.72, a meteoric 1,400% gain. Trading volumes surged into the tens of millions daily, making HydroGraph one of the most talked-about stocks in Canada.

But not everyone celebrated the rise.

The Shorts Move In

While retail enthusiasm exploded, hedge funds quietly built massive short positions. More than 30 million shares were shorted before August 16th, a staggering figure relative to HydroGraph’s float.

When the stock refused to crack, their losses mounted. That’s when the narrative shifted.

The Attack

Enter Capybara Research with a scathing short report. The timing was surgical: just as the shorts needed relief, the report hit, filled with unverified claims and baseless accusations.

The impact was immediate. HydroGraph fell from its highs all the way to $1.40 in just days.

But here’s the twist: those red days saw another 30–40 million shares traded. That means funds weren’t just short on the way up, they shorted again on the way down, doubling down to push the price lower.

The Pushback

Bambrough, who had helped shine the spotlight on HydroGraph in the first place, became one of its most vocal defenders.

“The people putting out short reports filled with obviously fraudulent accusations aren’t just liars. They are criminals. They have broken securities laws and the SEC should put them in jail along with the managers of the hedge funds that pay these people.” – Kevin Bambrough

He emphasized that HydroGraph’s technology is real, patent-protected, and unmatched in quality:

  • 100% SP2 bonded graphene — the purest possible form
  • ISO 9001 certified, 99.8% carbon with strategic functionalization
  • ~63% more energy efficient than legacy production methods
  • Modular, low-capex scaling
  • Near-zero emissions with hydrogen co-production

These are measurable facts, not speculation.

The Setup Now

Despite the short attack, HydroGraph has already begun to recover from its $1.40 low. But the short interest remains enormous. With tens of millions of shares still needing to be covered, the potential for a massive short squeeze is very real.

The combination of:

  • Bambrough’s continued public backing,
  • retail conviction, and
  • undeniable technology

sets the stage for a showdown between longs and shorts.

The Bottom Line

HydroGraph’s story is no longer just about a company making world-class graphene. It’s about how markets work when retail enthusiasm collides with predatory short funds.

Short sellers tried to kill the rally with fear, panic, and a questionable report. They managed to drag the stock from $3.72 to $1.40, but with so many borrowed shares still in play, this story isn’t finished.

If anything, the setup now looks even stronger. And if the shorts are forced to cover, HydroGraph’s meteoric rise could be just the beginning.

Disclaimer: The author did not receive any compensation for publishing this article. The author holds a position in HydroGraph Clean Power Inc. and may choose to buy or sell shares of the company at any time without notice. While reasonable efforts have been made to ensure the accuracy and reliability of the information provided, readers are encouraged to conduct their own research and seek independent financial advice before making any investment decisions related to the company mentioned.

FOLLOW US
X-twitter Linkedin Youtube
Subscribe

Never miss any important news. Subscribe to our newsletter.

SmallCapInvestor © 2025 All rights reserved

X-twitter Youtube Linkedin-in

DISCLAIMER

This is the official website of SmallCapInvestor (“SmallCapInvestor” or the “Creator”).

Please read the following terms and conditions of website use (the “terms and conditions”) carefully before accessing or using the Creator’s website as they represent a binding agreement between you (either an individual or a single entity) and the Creator and govern your use of www.smallcapinvestor.ca together with all of the information and materials available on such website (collectively, “This Site” or “www.smallcapinvestor.ca”). By accessing, browsing or using This Site, you agree to be bound by the terms and conditions as outlined herein. If you have not read, do not understand, or do not agree to be bound by these terms and conditions, please do not use This Site. The Creator reserves the right to change these terms and conditions from time to time at its sole discretion and without notice.

It is your responsibility to check for any updates, and you should revisit this page from time to time as your use of This Site is subject to the most current version of the terms and conditions posted at the time of such use.

The Creator has taken all reasonable care in producing and publishing information contained on This Site and will endeavour to do so regularly. However, material on This Site may still contain technical or other inaccuracies, omissions, or typographical errors, for which the Creator assumes no responsibility. Under no circumstances shall the Creator be liable for any direct, indirect, special, incidental, consequential or other damages, including but not limited to, loss of programs, loss of data, loss of use of computer or other systems, or loss of profits, whether or not advised of the possibility of damage arising from your use, or inability to use, the material on This Site. Further, you may not modify or reproduce in any form, electronic or otherwise, any information on This Site.

Your rights to use This Site

Provided that you accept and comply with these terms and conditions, you have the limited right to access and use This Site to view the various materials, including information, documents and other content on This Site and to copy, download or print a single copy of any of the information and materials available on it, solely for your personal non-commercial use or your internal informational use in business and not for resale or distribution to anyone else, provided that you reproduce all of the Creator’s proprietary markings on each copy of reproduced material. Except as expressly permitted by the Creator in writing, you may not copy, reproduce, download, upload, post, transmit, translate, modify, distribute, sell, rent, license, transfer, mirror, frame or create derivative works from This Site, in whole or in part, in any form or by any means. 

Do Not Use Any Information in Our Publications to Make an Investment Decision

We are paid advertisers and we are publishers of publicly disseminated information on behalf of our clients, publicly traded companies, or non-affiliate third party shareholders of various issuers (“Client Companies”). Do not base an investment decision on any of the contents of our publications on This Site.

We are not registered as and we do not act, directly or indirectly, in the capacity of any of the following and you should not construe our activities as involving advice from any of the following: (a) an investment advisor; (b) a broker dealer; (c) a broker; (d) a dealer; (e) a stock recommender; (f) a stock picker; (g) a finder; (h) a securities trading expert; (i) a financial planner; (j) a securities analyst; or (k) a financial analyst.

The information found on This Site was prepared without regard to any particular investor’s investment objectives, financial situation, or financial or investment needs. Accordingly, investors should not act on any information contained on This Site without obtaining specific advice from their financial advisors and should not rely on information herein as the basis for their investment decisions. Investments based on the information provided on www.smallcapinvestor.cainvolve a substantial risk of loss and are not appropriate for everyone. No representation is being made that utilizing the information on www.smallcapinvestor.ca will result in profitable trading or be free of risk of loss. Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk. The possibility exists that you could sustain a loss of some or all of your investment. 

Forward-Looking Information

Certain information contained on www.smallcapinvestor.ca, including any information as to the future financial or operating performance of the Client Companies highlighted, may be deemed “forward looking”. All statements on www.smallcapinvestor.ca, other than statements of historical fact, which address events or developments is expected to occur, are “forward-looking statements” or “forward-looking information”. Generally, these forward-looking statements can be identified by the use of forward-looking terminology, including but not limited to, the words “expects”, “does not expect”, “plans”, “anticipates”, “does not anticipate”, “believes”, “intends”, “estimates”, “projects”, “potential”, “scheduled”, “forecast”, “budget” and similar expressions or their negative connotations, or that events or conditions “will”, “would”, “may”, “could”, “should” or “might” occur. 

All such forward-looking statements are subject to important risk factors and uncertainties, many of which are beyond the ability to control or predict. Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause Client Companies’ actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements.

Forward-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. All of the forward-looking statements contained on www.smallcapinvestor.ca are qualified by these cautionary statements. The Creator expressly disclaims any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.

Indemnity

To the maximum extent permitted by applicable law, you will defend, indemnify and hold harmless the Creator, and its respective directors, officers, employees, consultants and agents from and against all claims, liability, and expenses, including all legal fees and costs, arising out of your breach of any provision of these terms and conditions or, any applicable law or proprietary or privacy right in connection therewith. The Creator reserves the right, in its sole discretion and at its own expense, to assume the exclusive defence and control of any matter otherwise subject to indemnification by you. You will co-operate as fully as reasonably required in the defence of any claim.

Stock Quotes

All stock price quotes and historical stock price data on This Site are provided by third parties, are for informational purposes only, and are not intended for trading purposes. If you are contemplating trading in securities of companies mentioned on www.smallcapinvestor.ca, the Creator strongly advises that you obtain independent professional advice (including independent legal and financial advice from qualified advisors) before making any investment decision. The Creator makes no representation or warranty regarding the timeliness, accuracy or completeness of any stock price quotes or historical stock price data.

Laws

This Site (excluding linked sites) is controlled by the Creator from its offices within the Province of British Columbia, Canada. By accessing This Site, you and the Creator agree that all matters relating to your access to, or use of, This Site shall be governed by the statutes and laws of the Province of British Columbia or the federal laws of Canada, as applicable, without regard to the conflicts of laws principles thereof. You and the Creator also agree and hereby submit to the exclusive personal jurisdiction and venue of the courts of the Province of British Columbia with respect to any and all matters arising in connection with these terms and conditions. 

Third Party Links 

The Creator has provided links from This Site to several other websites (“Third Party Websites”) that are arm’s-length to the Creator, and may embed content from Third Party Websites on This Site. The viewer should be aware that in linking to Third Party Websites they are leaving This Site and the Creator is not responsible for the content of any Third Party Website. Information on Third Party Websites, and any information from Third party Websites embedded on This Site, may be updated, revised, or otherwise modified without the knowledge or involvement of the Creator.  The Creator expressly disclaims any and all responsible for the accuracy of the content on any Third Party Websites, whether on This Site or not. 

Download pdf

FIND YOUR NEXT BIG WINNER!

We are committed to keeping your e-mail address confidential. We do not sell, rent, or lease our subscription lists to third parties, and we will not provide your personal information to any third party individual, government agency, or company at any time unless compelled to do so by law.

SUBSCRIBE NOW

FIND YOUR NEXT BIG WINNER.

SIGN UP TO THE NEWSLETTER TODAY!

We are committed to keeping your e-mail address confidential. We do not sell, rent, or lease our subscription lists to third parties, and we will not provide your personal information to any third party individual, government agency, or company at any time unless compelled to do so by law.