Short sellers are facing mounting pressure on Toyo Engineering as the stock continues its bullish momentum from last year. The surge reflects growing market speculation around rare earths sourcing—specifically, the notion that geopolitical shifts could drive Japan to diversify its supply chains away from traditional sources. If alternative rare earth procurement becomes a strategic priority, companies positioned in that supply chain could see sustained demand tailwinds. Current momentum suggests traders are pricing in this scenario, making the short position increasingly uncomfortable for bears. The real question is whether this rally is purely speculative or backed by concrete supply chain reshuffling deals. Either way, the stock has attracted serious buying interest, squeezing shorts and keeping bulls in control.