Short interest in Fortescue has climbed to A$11 billion as hedge funds increasingly target Andrew Forrest's mining empire, according to Australian Financial Review.
The surge in bearish bets comes as the company faces mounting pressure from Beijing's state-owned iron ore buyer, which is demanding price cuts for the steel-making ingredient or risking exclusion from supply chains.
Funds including Sage Capital and Ten Cap are among those positioning against the miner, while short interest in peers BHP and Rio Tinto is also rising.
The broadening short campaign reflects growing skepticism about the near-term outlook for Australian iron ore exporters.
Chinese steelmakers are leveraging their buying power to negotiate lower prices, squeezing margins for producers who have relied on higher commodity valuations.
The shift in sentiment is evident in the ASX, where mining stocks have been among the worst performers in recent sessions.