Cracks start to show in 4DX Medical as short sellers bite; JP Morgan sells off

Cracks in the share price of 4D Medical (ASX:4DX) have started to show as the company faces record high short pressure eyeing 7% of shares on issue.

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4D Medical was one of the hottest stocks in the 2025-2026 holiday period when the lung imaging medtech player hit $4/sh for the first time then kept climbing.

A second wave of enthusiasm hit in April of 2026 when the share price hit a fresh all time high of $6.80 – but that appeared to have been the catalyst for a victim-of-success moment for 4DX.

For all intents and purposes, the stock ran too hard to quickly – the chart makes that obvious – and it looks like that’s when short sellers got involved. Not helping matters was that at nearly $7/sh 4DX was boasting a mammoth market cap completely unsupported by fundamentals.

In fact, the short selling chart correlates pretty uniformly with the right hand side of the 5Y chart above, in case you wanted further evidence.

While the company’s inked some contracts with million-dollar figures and expanded partnerships with prestige academic brands such as Stanford, the fact remains that 4DX at this stage of its life hardly makes any revenue.

Most recently, a wave of selling from institutional investors like Morgan Stanley and JP Morgan. MarketLens data shows a mixed bag for 4DX at its sub-$4/sh valuation.

From the 13th-15th of May 2026, UBS Securities sold off $50M worth of shares; Morgan Stanley netted just south of $40M in 4DX and JP Morgan netted around $30M in share sales. Commonwealth Securities snatched up a lot of the shares on offer – some $80M worth – while CMC Markets itself grabbed nearly $20M.

But the fact remains for 4DX, put simply as possible, there’s more sellers than buyers.

An announcement put out earlier this week stating 4DX’s lung imaging tech can improve lung surgery outcomes really meant its tech can be used to weed out patients who are unlikely to respond to surgeries, and even mixed in with an upcoming webinar, that wasn’t enough to promote enthusiasm.

While it’s true it’s been a pretty bad week for the ASX, that doesn’t explain the entirety of 4DX’s recent price action.

Whether or not there’s more pain to come remains to be seen but it’s also still the fact that, at $3.50/sh – returns down -40% over the last month – 4D Medical still has a market cap of $2.08B; and 1Y returns are still up over +1,200%.

At the same time: the company isn’t really making meaningful revenues yet, either.

4DX last traded at $3.50/sh.

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