Short sellers have sharply reduced bets against SpaceX as the stock recovered from its post-earnings slide and a large lockup expiration expanded the pool of shares available for trading. Short interest fell to about 11% of publicly traded shares on Wednesday from a peak of 34% last week, according to S3 Partners. Shares rose 8% to around $144, leaving the stock about 7% above its $135 IPO price and roughly 38% above its Aug. 3 low. S3 said the decline in short interest reflects both short covering and a mechanical effect from a larger public float after more than 911 million shares became eligible for trading last Thursday. That unlocked tranche, equal to roughly 7% of shares outstanding, was larger than the 639 million shares sold in the IPO. SpaceX drew heavy bearish positioning after its first earnings report showed capital expenditures at more than twice revenue, raising concerns about the spending needed to support its plans. More shares may come to market soon, with another 319 million potentially unlocking on Aug. 20, followed by roughly 700 million in September and close to that amount in October, a schedule that could both increase volatility and make it easier to build fresh short positions if sentiment turns negative again.