Covering

Buying back borrowed shares to close a short position; sustained covering shows up as a falling disclosed short position.

A short position ends when the seller buys the shares back and returns them to the lender. In disclosure data this appears as a falling percentage, but the data cannot distinguish covering from a position simply being reduced below a disclosure threshold, or from the position being moved between holders.

Related terms

Short squeeze: A rapid price rise that pressures short sellers to buy back shares, which can push the price higher still.
Short selling: Selling a borrowed share in the expectation of buying it back later at a lower price, returning it to the lender and keeping the difference.

Educational only; nothing here is investment advice. Every term: glossary.